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Device Authority Update - issue of further conv...
Device Authority Update - issue of further conv....
About this update from Tern Plc
[{"type":"text","content":"\n \nTern PLC (TERN)Tern PLC: Device Authority Update - issue of further convertible loan11-Apr-2019 / 07:00 GMT/BSTDissemination of a Regulatory Announcement, transmitted by EQS Group.The issuer is solely responsible for the content of this announcement.\n\n11 April 2019\n\n \n\nTern Plc (the \"Company\", or the \"Group\")\n\n \n\nDevice Authority Update - issue of further convertible loan\n\n \n\nTern Plc (AIM: TERN), the investment company specialising in the Internet of Things (\"IoT\"), announces that, together with its co-investors, it has committed a further convertible secured loan to its portfolio company, Device Authority Limited (\"DA\"), which specialises in IoT security. The total funds secured by DA through this loan are US$418,895, of which Tern has contributed US$315,000.\n\n \n\nFollowing this investment, Tern's total convertible secured loan note position with DA is US$2,415,867. The loan is repayable on 31 December 2019.\n\n \n\nTern's continued support is testament to DA's strong track record of using the funds that it has raised to deliver critical components of its go-to-market strategy. During 2018, DA enhanced its products to ensure that they met key client challenges and expanded its ecosystem of partners. DA has continued this trend in 2019 and has secured three new orders in Q1 through their partner network as well as consistently increasing annual recurring revenue quarter on quarter.\n\n \n\nThe loan note accrues an interest coupon of 5 per cent. per annum and is convertible automatically on completion of an equity fundraising by DA of at least US$2.5 million if completed before 31 December 2019 (\"Qualifying Fundraising\"). The conversion will be into the most senior class of shares issued in the Qualifying Fundraising at the lowest fundraising price per share.\n\n \n\nIf a Qualifying Fundraising is not completed before 31 December 2019, but DA is able to procure an exit for its shareholders, the providers of the loan can elect to either receive 300% of the principal amount of the loan notes held by them in addition to the accrued interest, or to convert the loan and accrued interest into Class A Preference Shares of DA at a conversion price of £0.036681585 per share. \n\n \n\nProviders of this loan to DA will also be issued with 2.6 warrants for each...