Tern Plc : Issue of Equity

25 November 2014

Tern Plc

(AIM: TERN)

Placing, Directors' dealings, shares in issue

Tern Plc (AIM:TERN), the investment company specialising in the cloud and mobile sectors, is pleased to announce it has raised £378,000 before expenses through a placing of 12,600,000 million new ordinary shares of 0.02p each ("Ordinary Shares") at a price of 3p per Ordinary Share ("the Placing"). Additionally, subscribers receive a warrant to subscribe for 1 share at 3p each for every 10 shares purchased, exercisable at any time before 3 December 2017.  Following strong demand, the placing was oversubscribed and it was necessary to scale back investors. 

The Placing is to provide additional working capital to finance an accelerated growth programme in the Company's investee, Cryptosoft Ltd, and to facilitate further investments in accordance with its investing policy.

In addition, Angus Forrest and Michael Clark who provided Convertible Unsecured Loan Stock in the reorganisation on 16 August 2013 are each converting £45,000 into Ordinary shares at 2.016 pence per share into 2,232,143 Ordinary Shares, a total of 4,464,286 Ordinary Shares.

Application has been made for the new ordinary shares to be admitted to AiM and it is expected that admission will take place and trading in the new ordinary shares will commence on 3 December 2014.

When the new shares are admitted to trading the issued share capital will 39,972,179 Ordinary Shares of 0.02p and each share is entitled to one vote.  The Company does not hold any shares in Treasury.  The above figure may be used by shareholders as the denominator for the calculations to determine if they are required to notify their interest in, or a change to their interest in, the Company, under the Disclosure and Transparency Rules.

The directors' holdings are as follows:

	Number of Shares	%
Michael Clark	3,224,206	8.1
Angus Forrest	3,224,206	8.1
Al Sisto	2,400,000	6.0
Bruce Leith	2,173,900	5.4

Angus Forrest, Chairman of Tern plc said, "We are pleased by the level of demand that Tern have received. Cryptosoft is an exciting growth Company that we believe has a significant opportunity in the security products market. The funds raised will help accelerate the growth programme identified by Management, as well as providing additional new investment capital."

Enquiries:

Tern plc	Tel: [phone]
Angus Forrest
WH Ireland NOMAD and Broker	Tel: [phone]
John Wakefield
Peterhouse Corporate Finance (Joint broker)	Tel: [phone]
Lucy Williams / Duncan Vasey
Redleaf Polhill	Tel: [phone]
Charlie Geller	[e-mail]

About Tern:

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.

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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

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