Management Reports • Aug 3, 2018
Management Reports
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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 informa,on for Device Authority Limited ("DA"), one of Tern's investee companies and in which Tern has a 56.8 percent. holding.
The RNS of 29 September 2017 reproduced actual and forecast financial informa,on regarding DA which DA's brokers, US Capital Partners, had made available on its website in order to promote afundraisingfor DA.The forecasts were made public byTern in order to ensure no disparity of informa,on in the market. Both the RNSand the informa,on on US Capital Partners website highlighted that the forecasts were condi,onal upon afull 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 notyet completed and was ongoing, signalling that furtherannouncements 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 notachieve the announced revenue targets for 2017,and the DA fundraising had notyet been completed.
For the avoidance of any doubt, as the forecasts presented in the RNS of 29 September 2017 were condi,onal 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 ,me.The shareholders of DA remain suppor,ve and have provided the company with \$2,160,134 of addi,onal funding by way of conver,ble loan notes since 30 November 2017, and further outside investment con,nues to be sought. Tern is pleased with the progress DA is making as outlined, for example, in the por<olio update announced on 16 May 2018 and subsequentannouncements regardingthe 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.
| Tern Plc Al Sisto/Sarah Payne |
Via Redleaf Communica,ons |
|---|---|
| WH Ireland (NOMAD and joint broker) Mike Coe/Ed Allsopp |
Tel: 0117 945 3470 |
| Whitman Howard (Joint broker) Nick Lovering/Francis North |
Tel: 020 7659 1234 |
Redleaf Communica/ons Elisabeth Cowell/Fiona Norman Tel: 020 3757 6880
ISIN: GB00BFPMV798 Category Code:MSCU TIDM: TERN LEICode: 2138005F87SODHL9CQ36 Sequence No.: 5829 EQS News ID: 710609
End ofAnnouncementEQS News Service
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