TERN PLC

Capital/Financing Update • Feb 20, 2019

Tern PLC (TERN)

20-Feb-2019 / 07:00 GMT/BST

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20 February 2019

Tern Plc (the "Company", or the "Group") Update re. Converble Loan to Device Authority Limited

On 14 January 2019, Tern Plc (AIM: TERN), the investment company specialising in the Internet of Things ("IoT"), announced that it had agreed to provide a conver+ble secured loan note up to a total value of US\$400,000 ("the Loan") to its por0olio company, Device Authority Limited ("DA"). The Company advanced US\$240,000 of the Loan to DA at that +me and the provision of the balance of US\$160,000 was subject to the achievement of certain commercial milestones by DA by 20 February 2019.

The Company is pleased to announce that DA has achieved the necessary commercial milestones and has today advanced the remaining US\$160,000 of the Loan.

Accordingly, Tern's total conver+ble secured loan note posi+on with DA is currently US\$2,100,867. The Loan is repayable on 30 June 2019, or such other date as may be agreed between DA and the noteholders, to coincide with the other outstanding loan notes to DA.

In accordance with the terms of the Loan, the Company has been issued with a further 416,000 warrants, which are exercisable at any +me before 11 January 2026. Each warrant provides the holder with the right to subscribe for one Class A Preference Share of DA at an exercise price of £0.036681585 per share.

This announcement contains inside informaon for the purposes of Arcle 7 of EU Regulaon 596/2014

Enquiries Tern Plc Al Sisto/Sarah Payne	via Newgate Communica+ons
Allenby Capital (Nomad and joint broker) David Worlidge/Alex Brearley	Tel: 020 3328 5656
Whitman Howard (Joint broker) Nick Lovering/Christopher Furness	Tel: 020 7659 1234
Newgate Communicaons Elisabeth Cowell/Fiona Norman	Tel: 020 3757 6880

ISIN: GB00BFPMV798 Category Code:MSCM TIDM: TERN LEICode: 2138005F87SODHL9CQ36 Sequence No.: 7565 EQS News ID: 777831

End ofAnnouncementEQS News Service