3 August 2018
Tern Plc (AIM: TERN)
Statement re: Device Authority Forecasts from September 2017
Tern Plc (AIM:TERN), the investment company specialising in the Internet of Things ("IoT"), seeks to clarify the RNS dated 29 September 2017, which included, inter alia, financial information for Device Authority Limited ("DA"), one of Tern's investee companies and in which Tern has a 56.8 per cent. holding.
The RNS of 29 September 2017 reproduced actual and forecast financial information regarding DA which DA's brokers, US Capital Partners, had made available on its website in order to promote a fundraising for DA. The forecasts were made public by Tern in order to ensure no disparity of information in the market. Both the RNS and the information on US Capital Partners website highlighted that the forecasts were conditional upon a full and successful $10m raise. The forecasts were prepared by the management of DA and the historic numbers were unaudited.
Tern announced on 1 February 2018 that the DA fundraise had not yet completed and was ongoing, signalling that further announcements would be made in respect of the fundraise. Tern announced its final results for the year ended 31 December 2017 on 27 March 2018, in which it was confirmed that DA did not achieve the announced revenue targets for 2017, and the DA fundraising had not yet been completed.
For the avoidance of any doubt, as the forecasts presented in the RNS of 29 September 2017 were conditional upon a successful and full completion of the proposed fundraise, Tern confirms that the DA forecasts of September 2017 are no longer relevant, and that DA does not have any forecast numbers in the public domain at the current time. The shareholders of DA remain supportive and have provided the company with $2,160,134 of additional funding by way of convertible loan notes since 30 November 2017, and further outside investment continues to be sought. Tern is pleased with the progress DA is making as outlined, for example, in the portfolio update announced on 16 May 2018 and subsequent announcements regarding the development of the strategic partnership with Thales.
An update on DA's performance will be provided in the Company's half yearly report for the six months ended 30 June 2018 which will be announced in the first half of September 2018.
Al Sisto/Sarah Payne
Via Redleaf Communications
(NOMAD and joint broker)
Mike Coe/Ed Allsopp
Tel: 0117 945 3470
Nick Lovering/Francis North
Tel: 020 7659 1234
Elisabeth Cowell/Fiona Norman
Tel: 020 3757 6880