TIDMTERN
RNS Number : 4462J
Tern PLC
27 April 2022
27 April 2022
Tern Plc
("Tern" or the "Company")
AGM Statement
Tern Plc (AIM:TERN), the company focused on value creation from
Internet of Things ("IoT") technology businesses, announces that at
the Company's Annual General Meeting ("AGM") being held later today
Tern's Non-Executive Chairman, Ian Ritchie, will make the following
statement:
"After two years of Covid-19 related restrictions it is pleasing
to be able to welcome shareholders back to the AGM.
The last two years have been pivotal for all of Tern's network
of companies* and I believe that all of them are now extremely well
positioned for the future. We have supported their growth from
their early start-up days, to now alongside independent third party
investors, who have invested after conducting thorough due
diligence, demonstrating confidence in their management teams,
business models and future prospects.
These actions have resulted in uplifts in their values, enabled
them to gain significant commercial traction and grow their monthly
recurring revenues, which we believe to be a key metric in
establishing their value for a trade sale or IPO. As these monthly
recurring revenues continue to grow and the companies continue to
enter into significant commercial contracts, we regularly evaluate
the most appropriate next step to deliver value for Tern
shareholders, whether that be through further third party
syndicated private equity investment, a trade sale or IPO.
In July last year we undertook the first IPO of one of our
companies, Wyld Networks, on the NASDAQ First North Growth Market
in Stockholm. Since the IPO we have seen a significant uplift in
Wyld Networks' value as they have reinforced their market
leadership position. Wyld Networks continues to enter into further
commercial partnerships to provide routes to market for their Wyld
Connect Satellite IoT solution, which is intended to be a key part
of the delivery of communications technology via the emerging
constellations of low earth orbit satellites. The public quotation
of Wyld Networks has also provided us with a route to exit our
participation at the appropriate time to maximise value for Tern
shareholders.
With Device Authority we have continued to see significant
progress, particularly in the US following the strategic investment
from Venafi announced in December 2021. The transaction with Venafi
(whose major investor is Thoma Bravo), fulfilled the goal of
obtaining an active strategic partner for Device Authority with
solid cybersecurity credentials and a large presence in the United
States. Tern continues to hold a majority equity stake in Device
Authority, a company with sufficient funding to implement its
growth plans this year, and one that is enjoying material growth in
its monthly recurring revenues from its subscription base and its
modularised licence platform, KeyScaler(R), together with receiving
considerable additional interest, particularly in the US, following
the strategic investment from Venafi.
FundamentalVR continues to go from strength to strength, adding
additional capabilities to its immersive, surgical simulation
application platform, Fundamental Surgery, and winning new
contracts and customers. The contracts, many of a long-term nature,
being secured are a direct result of the careful deployment over
the last two and a half years of the funds from the GBP4.3 million
Series A raise, led by Downing Ventures, in October 2019. The
FundamentalVR team, assisted by Tern, continue to build the
business and expand FundamentalVR's market position, specifically
in the United States, and we were very pleased to see the quality
of FundamentalVR's technology being recognised at a number of
awards last year. At the UK National Technology Awards 2021
FundamentalVR won both 'Virtual or Augmented Reality Product of the
Year' and 'Healthcare Tech of the Year'. The business was also the
recipient of the 'Frost & Sullivan Entrepreneurial Company of
the Year' award in 2021.
InVMA, now trading as Konektio following its GBP2.125 million
investment round in December 2021, led by fund managers Foresight
and Mercia, is another company continuing to build revenues on a
monthly basis. Konektio's Industrial IoT connected asset software
as a service (SaaS) product, AssetMinder, is in ever increasing
demand from customers who are looking for contactless monitoring of
factory and remote assets. Konektio has a strong sales pipeline and
is continuing to build its recurring revenue base, particularly via
its expansion into Europe and North America. Following the December
2021 investment round Tern holds 36.8% of InVMA's equity, in what
is now a simplified capital structure.
Talking Medicines, the most recent company to join the Tern
portfolio, welcomed Boston based life science investor Mark
Bamforth in January 2022, when his family office invested GBP1.19
million as part of a GBP1.59 million funding round. This enabled
Tern to recognise an uplift of approximately 62% on the amount
invested in November 2020 and provided Talking Medicines with the
funds to support its expansion, particularly in the United States.
This has already enabled them to gain further US recognition for
their PatientMetRx platform, launched in February 2021, and
continue to build their subscription base.
In March this year, we agreed to participate in a new venture
capital fund, the Sure Valley Ventures UK Software Technology Fund
(the "New SVV Fund") alongside the British Business Bank and other
investors. The New SVV Fund will invest in a range of private UK
software companies with a focus on companies in the immersive
technology and metaverse sectors, including augmented and virtual
reality, artificial intelligence, the IoT and security. We believe
our participation in the New SVV Fund is an excellent way to
broaden Tern's exposure to exciting early-stage private UK
technology companies with a modest capital commitment, whilst
delivering a number of other potentially significant benefits to
Tern and its shareholders. In addition to the attractive financial
returns we envisage from our participation, we believe that it will
provide important technology insights, assist with business
development and increase our network, thereby significantly
enhancing the Tern ecosystem.
In June last year we announced that an application was being
made for Tern's shares to be publicly cross-traded on the OTCQB
Market, based in the United States. Whilst the process is ongoing,
progress has been frustratingly slow whilst it is ascertained
whether or not Tern's specific structure and classification under
the AIM Rules enables the Company to be eligible to be publicly
cross-traded in the United States under applicable US securities
laws. We continue to take advice in this regard and look forward to
a final determination being made.
In conclusion, a stake in Tern should be seen as an ability to
participate in the development of attractive early-stage IoT
technology businesses, generally not available to public company
investors, whose growth, with our guidance, targets long-term
capital gains. Whilst we are beholden to market dynamics and have
relatively little control over when such value will be fully
realised, it is our job to ensure that we work to achieve the
strongest return for your investment, and we assure you that we
will continue to make that our principal goal."
*Tern's "network of companies" or "our companies" comprise:
Device Authority Limited, Wyld Networks AB, InVMA Limited (trading
as Konektio), FVRVS Limited (Trading as FundamentalVR) and Talking
Medicines Limited, which are companies that Tern has interests
in.
Online Investor Presentation and Q&A Session
Tern's management and management from certain of Tern's network
of companies will be hosting an online presentation and Q&A
session at 5 p.m. UK time today, Wednesday 27 April 2022. This
session is open to all existing and prospective shareholders.
Those who wish to attend, and have not already done so, should
register via the following link and they will be provided with
access details:
https://us02web.zoom.us/webinar/register/WN_WBJhT6wfSOiSPkwu1NTkaA
Participants will have the opportunity to submit questions
during the session, but questions are welcomed in advance and may
be submitted to: tern@investor-focus.co.uk .
Enquiries
Tern Plc via IFC Advisory
Al Sisto (CEO)
Sarah Payne (CFO)
Allenby Capital Limited Tel: 0203 328 5656
(Nominated Adviser and Broker)
David Worlidge / Alex Brearley (Corporate
Finance)
Matt Butlin / Kelly Gardiner (Sales
and Corporate Broking)
IFC Advisory Tel: 0203 934 6630
(Financial PR and IR) tern@investor-focus.co.uk
Tim Metcalfe
Graham Herring
Florence Chandler
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END
AGMUNAKRUUUSUAR
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