FVR News 77% uplift in valuation31 May 2022 08:09
31 May 2022
Tern Plc
("Tern" or the "Company")
FundamentalVR Fund Raise
Tern Plc (AIM:TERN), the company focused on value creation from Internet of Things ("IoT") technology businesses, is pleased to announce that FVRVS Limited ("FundamentalVR"), has undertaken a Series B fund raising round, securing GBP7 million in new equity investment (the "FundamentalVR Series B") from existing investors and a new institutional investor, at a valuation uplift of 77% from the previous book valuation of Tern's holding.
Highlights
-- FundamentalVR has raised a total of GBP7 million in a Series B fund raising from existing investors and a new institutional investor, with an additional GBP1.2 million of convertible loan notes being converted
-- Tern has converted approximately GBP570,000 in loan notes and accrued interest it held in FundamentalVR into equity, in line with the terms of these loan notes, but will invest no new money in the FundamentalVR Series B
-- The FundamentalVR Series B is intended to provide FundamentalVR with funding to enable to grow in line with its strategy, including expanding its US activities
-- With the completion of the GBP7 million FundamentalVR Series B, including the conversion of Tern's loan notes to equity, Tern will hold 20.0% of FundamentalVR's equity, valued at GBP6.3 million at the valuation implied by the FundamentalVR Series B price
FundamentalVR Fund Raise
Prior to the FundamentalVR Series B, Tern had a holding of 26.9% in FundamentalVR, plus a loan convertible into FundamentalVR equity of GBP530,000 and accrued interest of GBP39,932. As at 31 December 2021, the date of Tern's last published book valuation, this holding had an audited book value of GBP3.6 million.
Following the FundamentalVR Series B funding of GBP7 million, the conversion of Tern's GBP0.53 million of loan notes and the conversion of GBP0.63 million of loan notes held by other investors, FundamentalVR is now valued in total at approximately GBP23 million on a pre-money basis and Tern now has a holding of 20.0% in FundamentalVR (before any dilution on exercise of any future FundamentalVR employee share options) , with an unaudited book valuation of GBP6.3 million, representing a 77% uplift on the 31 December 2021 book value of Tern's holding.
Further information on FundamentalVR
FundamentalVR delivers virtual reality haptic 'flight simulators' for surgery creating a safe, measurable and repeatable space to refine skills. FundamentalVR's goal is to transform the way surgeons prepare, practice, and refine their skills. It has built an immersive, surgical simulation application platform, Fundamental Surgery, to provide medical professionals with the opportunity to rehearse, practice, and test themselves within a safe, controllable space that is as close to real-life as possible.
According to the latest filed financial statements for FundamentalVR, for the 12 month period ended 31 December 2020, the business recorded