TERN PLC

Capital/Financing Update • Oct 30, 2019

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Tern PLC (TERN)

Tern PLC: FundamentalVR Series A Funding Round

30-Oct-2019 / 07:00 GMT/BST

Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.

The issuer is solely responsible for the content of this announcement.

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This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

30 October 2019

Tern Plc ("Tern" or the "Company")

FundamentalVR Series A Funding Round

Tern Plc (AIM: TERN), the investment company specialising in the Internet of Things ("IoT"), is pleased to announce that FVRVS Limited ("FundamentalVR"), a leading virtual reality ("VR") training and data analysis technology platform and one of Tern's existing portfolio companies, has closed a £4.3 million Series A funding round, including a £0.5 million convertible loan note conversion, with a post-money valuation of £11.3 million. This funding round allows for further investment into FundamentalVR's Fundamental Surgery education platform, the first surgical simulation software system to deploy HapticVR(TM), combining VR with cutting-edge haptics (the sense of touch).

The implicit price of the syndicated funding represents a 27% uplift on the investment of £1.9 million made by the Company in FundamentalVR in May and October 2018. Following the funding round, Tern's shareholding in FundamentalVR will be 26.9% with a valuation of £3.0 million, representing a fair value increase of £0.6 million.

The funding round was led by Downing Ventures, with participation from Epic Private Equity and Brighteyes Ventures. Leading medical institutions also participated in the funding round, including Mayo Clinic, one of America's leading centres of medical excellence, and Sana Kliniken, one of Europe's leading medical organisations and the third largest hospital organisation in Germany, which is a strong endorsement of the quality of FundamentalVR's offering.

In conjunction with this funding round, Tern has converted, at a 20% discount to the current fundraising price, £0.5 million of convertible loan notes advanced to FundamentalVR (plus interest). Tern provided these bridging loans to FundamentalVR between April and September 2019.

Based on FundamentalVR's latest statutory accounts for the year ended 31 December 2018, FundamentalVR had net assets of £817,952 at that date and incurred a loss for the year of £2,040,368.

Tern CEO, Al Sisto, said, "We identified early on that FundamentalVR's team was developing a platform that was very special. A training and data analysis offering which could revolutionise the skills development of  surgical practice, while at the same time creating a database of significant importance to the industry. We are delighted that the value and relevance of this exciting business and its entire staff has been recognised by this outstanding syndicate of new investors we helped solidify."

"This is an important milestone for FundamentalVR and it epitomises Tern's strategy to invest in great teams and ideas, not only through the provision of capital, but also with active support and advice for the benefit of our shareholders. Changing the approach to learning and deploying new procedures and products in the world of healthcare is of critical importance for everyone's future and FundamentalVR is leading the way. We look forward to announcing further important developments from the company."

**ENDS**

Enquiries

Tern plc Al Sisto, CEO Sarah Payne, Finance Director	Via Newgate Communications
Allenby Capital Limited (Nomad and Joint broker) David Worlidge/Alex Brearley	Tel: 0203 328 5656
Whitman Howard (Joint broker) Nick Lovering/Christopher Furness	Tel: 020 7659 1234
Newgate Communications PR Elisabeth Cowell/Megan Kovach	Tel: 020 3757 6880

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ISIN:	GB00BFPMV798
Category Code:	MSCH
TIDM:	TERN
LEI Code:	2138005F87SODHL9CQ36
Sequence No.:	25848
EQS News ID:	899965

End of Announcement	EQS News Service

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