REACH

25 August 2021

Tern Plc

("Tern" or the "Company")

Wyld Networks Third Party Funding

Tern Plc (AIM:TERN), the investment company specialising in the Internet of Things ("IoT"), is pleased to note that its portfolio company Wyld Networks AB ("Wyld Networks") has announced that it has secured further funding in the form of a loan from a third party in order to accelerate its development.  Tern currently holds 60.7% of Wyld Networks' issued share capital.

In light of Wyld Networks' strong recent performance, including winning new contracts with significant customers, it has put in place an accelerated operating plan and has entered into a loan agreement for SEK 12 million (approximately £1 million) (the "Loan") with Formue Nord Fokus A/S (the "Lender").  This financing will bring forward the recruitment of additional sales and development resources to assist with accelerating the commercialisation of Wyld Networks' solutions in global markets.

Alongside the loan, Wyld Networks will issue a 'TO3' series of warrants (the "Warrants") to the Lender and free of charge to existing Wyld Networks shareholders.  Shareholders of Wyld Networks, including Tern, will receive one Warrant for every seven shares held.  A total of 2,275,000 Warrants will be issued, of which 1,093,956 Warrants will be issued to the Lender and 1,181,044 Warrants will be issued to the current shareholders of Wyld, including 717,275 Warrants to Tern.  The issue of the Warrants is intended, to some extent, to compensate the Wyld shareholders for the dilution that the Warrants issued to the Lender entail.

Each Warrant entitles the owner to subscribe for one new share in Wyld Networks at a price of 70 percent of the volume weighted average price of Wyld Networks' shares on the Nasdaq First North Premier Growth Market during the period from 2 May 2023 to 15 May 2023, with a maximum price of SEK 15.75 per share and a price not less than the nominal value of Wyld Networks' shares. 

Commenting Al Sisto, CEO of Tern, said:

"We are very pleased with how Wyld Networks is performing and being quoted on a public market enables it to access funding solutions to accelerate its future growth that would not be available to a private company.  This funding structure provides Wyld Networks with access to capital without any significant dilution to the Tern position."

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