GCITern: Progressive
(TERN ) announced on 23 September that it has raised £144k gross, via an open offer to existing shareholders, at an issue price of 1.25p. A general meeting (GM) was held on the same day, which passed the resolutions to disapply pre-emption rights. This gives Tern the ability to protect its commercial position by enabling additional funding possibilities and reopening its £3m facility negotiated last year, which requires the issue of warrants on drawdown. Tern’s H1 results earlier in the month highlighted that, despite the difficult backdrop for technology stocks, Tern’s core portfolio businesses are thriving rather than just surviving.
Aggregated ARR improved 22% year on year and all other KPI metrics showed strong progress. The businesses are gaining commercial traction, with repeat licencing revenue through the SaaS models and a growing high-profile customer base. Operating costs have been cut by 42% but Tern remains focused on supporting the companies to grow. Third-party investments are critical proof-points that Tern’s model is delivering. Having strategic partners (such as Ten Eleven) highlights that Tern is attracting ‘intelligent growth funding’ from partners with substantial experience and reach across the US.
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