Statement re Update on Device Authority Fundraise

29 September 2017

Tern Plc (AIM: TERN)

Update on Device Authority Limited Fundraise

Further to the announcement of 11 August 2017, Tern Plc (AIM:TERN), the investment company specialising in the Internet of Things ("IoT"), is pleased to announce that its investee company, Device Authority Limited ("Device Authority"), commenced its fundraising activity with US Capital Partners (www.uscapitalpartners.net) on 28 September 2017 to raise new equity through a private placement offering.  The investment opportunity is initially available to registered accredited investors and will be open for up to 120 days.

As previously announced, the minimum total subscription to be accepted by Device Authority through the private placement will be US$2.5 million, out of a total US$10 million offering, and first close is now expected to be during October 2017.  The fund-raising attributes a pre-money valuation to Device Authority of US$36 million or US$0.75 per share, an increase from the US$23 million or US$0.47 per share at the last equity issue in October 2016.

Upon completion of the US$2.5 million first close, Tern's ownership will be 53.2%.

Upon a successful and full completion of the proposed fund raise, Device Authority is forecast to achieve the following:

For year ending	2015	2016	2017	2017	2018	2019	2020	2021
31 December Consolidated results	Actual	Actual	6 months  to 30 June  Actual	Projected	Projected	Projected	Projected	Projected
	$000	$000	$000	$000	$000	$000	$000	$000
Recognised revenue	71.2	57.0	39.8	604.2	5,106.6	10,805.0	20,342.4	33,413.3
Cost of sale	-	-	-	8.5	76.6	149.7	286.8	501.2
Gross profit/(loss)	71.2	57.0	39.8	595.7	5,030.0	10,655.2	20,055.6	32,912.1
SG&A	1,132.8	2,215.6	1,725.9	2,837.6	4,776.9	6,403.5	8,440.9	11,297.4
R&D	195.6	653.7	40.4	1,472.1	2,229.1	2,566.2	3,019.4	3,904.7
EBITDA	(1,257.2)	(2,812.4)	(1,726.5)	(3,713.9)	(1,976.0)	1,685.5	8,595.3	17,710.0
Net profit/(loss)	(1,278.8)	(2,714.3)	(1,823.1)	(3,733.9)	(2,276.8)	1,340.5	8,240.6	17,374.9

This announcement includes inside information as defined in Article 7 of the Market Abuse Regulation No. 596/2014 and is disclosed in accordance with the Company's obligations under Article 17 of those obligations.

Enquiries

Tern Plc Al Sisto/Sarah Payne	via Redleaf
WH Ireland (NOMAD and joint broker) Mike Coe/Ed Allsopp	Tel: [phone]
Whitman Howard (Joint broker) Nick Lovering/Francis North	Tel: [phone]
Redleaf Communications David Ison/Elisabeth Cowell	Tel: [phone]

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This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Tern Plc via Globenewswire