Business
Funding facility
Funding facility.
About this update from Tern Plc
[{"type":"text","content":"\n\nTHIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF EU REGULATION 596/2014 (WHICH FORMS PART OF DOMESTIC UK LAW PURSUANT TO THE EUROPEAN UNION (WITHDRAWAL) ACT 2018). UPON THE PUBLICATION OF THIS ANNOUNCEMENT THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE WITHIN THE PUBLIC DOMAIN.\n12 June 2023\n \nTern Plc\n(\"Tern\" or the \"Company\")\n \nFunding facility\n \nTern Plc (AIM:TERN), the investment company specialising in supporting high growth, early-stage, disruptive Internet of Things (\"IoT\") technology businesses, announces that it has signed a loan facility agreement (the \"Facility\") with an investor (the \"Investor\") to provide a loan facility of up to £3.0 million, available for up to 36 months.\nThe Directors intend that the Facility will be used to provide Tern with a stronger negotiating position and access to funding for follow-on investment opportunities in future syndicated fundraises undertaken by Tern's existing portfolio companies.\nThe Facility provides for an initial drawdown (the \"Initial Advance\") of £500,000, which the Company has drawn down, with further drawdowns being subject to the conditions of the Facility at that point in time. Funds advanced under the Facility will attract a fixed interest rate of 1.0% per calendar month and will be repayable with accrued interest, in equal monthly instalments, commencing 180 days from the date of drawdown until the end of the 18 month term of each drawdown.\nThe Company may repay any amounts drawn down under the Facility in cash and it is the Directors current intention that any amounts drawn down under the Facility will be repaid from the proceeds from the full or partial exit of one or more of its current investments.\nAlternatively, the Company may settle any outstanding amounts owed as monthly repayments through the issue of new ordinary shares of 0.02p each in the Company (the \"Ordinary Shares\") (a \"Non-cash Repayment\"). Following any decision by the Company to make a Non-cash Repayment the Investor will be automatically granted conversion rights over such drawndown principal and interest balances that were due pursuant to a repayment (the \"Conversion Rights\"). Pursuant to such Conversion Rights, the Investor will then have the right for 12-months to convert such amounts into Ord...