20 May 2020

Tern Plc ("Tern" or the "Company")

Wyld Networks Limited issues £1.1m of Convertible Loan Notes to Tern to replace existing Cash Flow Loan and announces new agreement

Tern Plc (AIM: TERN), the investment company specialising in the Internet of Things (IoT), announces that it has used the approximately £1.1 million of cash flow loan monies outstanding from its portfolio company, Wyld Networks Limited ("Wyld"), as at 19 May 2020 to apply for the subscription of a secured convertible loan note ("CLN") in Wyld of the same amount. 

 

Tern is also pleased to announce that Wyld has also signed an agreement with Highland Health Ventures Ltd ("HHVL") to test and deploy its technology into certain care homes in Scotland with the aim of helping to protect and prevent the spread of COVID-19 and other viruses. HHVL is an independent company with a collaboration agreement with NHS Highland for the purpose of developing innovations in healthcare.

 

Wyld's technology is to be used to provide digital access and anonymised social distance monitoring and alerting through a mobile application and a mesh wireless network of connected smartphones and IoT devices. Wyld and HHVL have already started the first project for the initial testing and implementation of this technology in a care home in Scotland. The Board of Tern believes that Wyld's technology may also have broader applications in helping other businesses get back to work.

 

The Wyld system is to be used to create virtual 'geozones' around the care home and particularly sensitive or quarantined areas, to control access as well as dynamic personal two-metre geozones around everyone using the application. All staff and visitors will have to download the mobile application and input COVID-19 test results and enter any symptoms into a self-diagnostic algorithm embedded in the application to create a risk profile. Residents without a smartphone could be given electronic wristbands or similar.  

 

Anyone approaching a geozone will be sent a message to let them know if they are allowed to enter. Wyld's real-time data analytics platform will allow care home managers to contact and advise anyone who has been in close contact with someone who tests positive for COVID-19 or develops symptoms.

 

Tern's CEO, Al Sisto, said:

 

"This agreement demonstrates how IoT technology can be used to support healthcare workers in their fight against this devastating virus and we are very proud of the Wyld team for developing a solution which we believe can contribute to this cause. In securing this agreement, Wyld is developing new relationships aimed at helping slow the spread of COVID-19 across care home communities and other environments where groups of people are housed. By converting the cash flow loan monies due to Tern into the CLN, Tern is providing Wyld with balance sheet stability."

 

Further information about the CLN

 

The secured CLN of £1.1 million bears interest at 5% per annum and is convertible into Wyld shares, at Tern's option, on completion of an exit or a Wyld equity fundraise of at least £1 million from a third party before 19 May 2021 (the "Maturity Date"). This conversion would take place at a 20% discount to the Wyld equity fundraise price or the exit price per Wyld share. The CLN is not transferable other than with the prior consent of Wyld and is subject to customary terms and conditions for such an instrument.

 

Enquiries