Statement re Warrant Exercise

7 September 2015

Tern Plc

(AIM: TERN)

Further clarification re terms of warrant exercise

Further to the announcement of 4 September 2015, Tern Plc ("Tern" or "the Company"), the AIM quoted investment company specialising in the cloud and mobile sector of the IT market, is providing further clarification on the terms of the 588,640 warrants which were exercised on 17 August 2015.

As previously confirmed, the warrants were granted under the terms of a warrant instrument  ("the Warrant Instrument") which were summarised in a circular dated 31 July 2013 which, inter alia, stated:

"[the warrant holder] will be issued with a warrant which is exercisable over 1.5 per cent of the Company's Enlarged Share Capital from time to time at the Placing Price for a period of 3 years, as part payment for the introduction of the incoming Investors."

The terms of the Warrant Instrument entitled the warrant holder to exercise warrants representing 1.5% of the Company's then issued share capital at an exercise price of 0.23p, (as adjusted for the share capital reorganisation which took effect on 1 November 2013 under the terms of which 1 new ordinary share of 1p was issued for every 1000 issued shares of 0.001p each and each such new ordinary share was then subdivided into 20 new ordinary shares of 0.02p each). On this basis, the warrant holder would have been entitled to 816,630 new ordinary shares at an exercise price of 4.6p per share. In fact, the Warrant Instrument also conferred on the warrant holder the entitlement to exercise the warrant for a lesser number of shares at the nominal value per share, in accordance with a formula  in the Warrant Instrument and based on the average share price for the five business days preceding the date of exercise. On this basis, the warrant holder was entitled to 588,640 new ordinary shares at an exercise price of 0.02p per share.

Tern regrets any confusion and confirms there are no further warrants that are entitled to be exercised under the Warrant Instrument or at the nominal value per share.

Enquiries

Tern plc                                                                                  Tel: [phone]
Angus Forrest

WH Ireland                                                                            Tel: [phone]
John Wakefield

Peterhouse Corporate Finance (Joint broker)                  Tel. [phone]

Lucy Williams / Duncan Vasey

Tern Plc acquires and invests in privately owned companies with self-owned IP, established products and customer bases. Its investment strategy is focused on taking an active role in its investee companies in order to improve the business model, accelerate growth, expand the business globally, and identify exit opportunities.

---

This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX 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

HUG#1950284