29 December 2017

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

Conversion of Loan Note

Tern Plc (AIM:TERN), the investment company specialising in the Internet of Things ("IoT"), announces that it will issue and allott 15,714,285 Ordinary Shares of 0.02 pence each ("Ordinary Shares") at a price of 1.75p pursuant to the conversion of £275,000 of the loan note which was announced on 30 November 2017.  This represents the final conversion of the remaining loan note.

As previously announced, the funds raised will be used to provide a loan to the Company's portfolio company, Device Authority (see announcement dated 28 December 2017) and to build and grow Tern's pipeline of investment opportunities. Application will be made for the 15,714,285 new Ordinary Shares to be admitted to trading on AIM and it is expected that admission will take place on or around 8:00 a.m. on 5 January 2018 ("Admission").

In accordance with the Disclosure Guidance and Transparency Rules (DTR 5.6.1R) the Company hereby notifies the market that immediately following Admission its issued share capital will consist of 159,001,140 Ordinary Shares of 0.02 pence each.  The Company does not hold any shares in treasury.  Shareholders may use these figures as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FCA's Disclosure Gudance and Transparency Rules.

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

Enquiries

Tern Plc Al Sisto/Sarah Payne	via Redleaf
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 Communications Elisabeth Cowell/Fiona Norman/Alina Haritonova	Tel: 020 7382 4730

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