Commenting on the results, Tern CEO, Al Sisto said: As a proactive investor which backs innovation, it has been very rewarding to see the commercial progress made by our portfolio companies reflected in our net asset value, which has increased during the period.
This rise included a successful Series A fundraise for FundamentalVR, with an outstanding syndicate of new investors we helped solidify at an implied valuation 27% higher than when we took a position in the company just a year earlier.
The positive momentum developed in 2018 continued throughout 2019 with important milestones achieved across our business and the businesses of our principal portfolio companies.
We expanded our Tern team and we again continued to increase turnover and employees within our principal portfolio companies.
We continue to see a range of exciting and high growth technology companies across the segments of IoT in which we invest. Having strengthened our financial position during the year, we are now well-placed to deliver additional diversification and this will be a priority. We are focused on investing in companies which provide commercial solutions to the healthcare and industrial use cases where security, safety and regulatory compliance are critical requirements and contribute to the synergies within our portfolio.
During this challenging period caused by COVID-19, we have also taken steps to protect our balance sheet, reducing our salaries by 20% and we are working very closely with the entrepreneurs within each of our portfolio companies, helping them to access government funding and to innovate. We remain optimistic about our portfolio businesses. As lockdown eases, there will be an ongoing need for technology to support continuing social distancing measures and we are focused on ensuring our portfolio companies are well-positioned for growth when the economy begins to recover.
Wyld Issues Convertible Loan Notes
Tern Plc (AIM: TERN), the investment company specialising in the Internet of Things (“IoT”), is pleased to announce that its portfolio company, Wyld Networks Limited (“Wyld”), has secured £400,000 from an investor to fund its growing pipeline of opportunities and for general working capital purposes, by way of an unsecured Convertible Loan Note facility (“CLN”). The CLN has been issued in full. The CLN also includes an option to convert into Tern shares under certain circumstances.
Tern’s CEO, Al Sisto, said:
“Wyld has gone from strength to strength over the past 12 months and this external investment is a huge vote of confidence in Wyld’s management team, which has transformed this start up business and its pipeline in a very short space of time. This external investment is from an investor who is seeking exposure to the mid- to long-term growth opportunities presented by IoT innovation and to have received its additional support early in the development of Wyld is very validating. With contracts signed to provide IoT solutions, a cooperation agreement with one of the world’s largest satellite operators secured and its technology now patent pending, Wyld has reached an important point in its development. These funds will enable Wyld to continue on this upward trajectory towards the goal of securing a syndicated Series A funding round in due course.
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