This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

27 August 2020

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

InVMA appoints new CEO and secures Future Fund convertible loan

Investment of £125,000 in InVMA

Tern Plc (AIM: TERN), the investment company specialising in the Internet of Things ("IoT"), is pleased to announce that its portfolio company, InVMA Limited ("InVMA"), the Industrial IoT company that enables customers to digitally improve performance using predictive intelligence,  has appointed Peter Stephens as CEO and has secured a Future Fund convertible loan of £125,000 which will be matched by Tern. Tern has a 50% holding in InVMA.

Appointment of InVMA CEO

The Board is delighted that Peter has joined the InVMA management team to help finalise the transformation of the business to a SaaS based software products company. Peter has extensive investment banking experience and most recently in his career has focused on early stage software and technology businesses. He brings to InVMA a proven track record of driving international business growth and value, from senior operational roles in Virgin Group, Bullitt Group and Nectarine Health.  While at Bullitt Group, revenues increased from $99m to $151m and Peter also secured an exit for investors in Bullitt.  He also recently secured an exit for investors in Nectarine Health.

As part of the remuneration package Peter will also have the ability to secure an equity position of up to 7% of InVMA equity, based on successful completion of key strategic milestones.

Pat Nash, the co-founder and former CEO of InVMA, remains on the Board. In his new role as Chief Innovation Officer he will work closely with Peter to support the future growth and development of the business.

Future Fund convertible loan

InVMA has also secured additional investment of £0.25 million, with the UK Future Fund Scheme and Tern contributing £125,000 each.  The Scheme overview is set out on the British Business Bank website (https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-schemes/future-fund/) with the key terms of the £0.25 million investment being as follows:

• Convertible at a 20% discount to the next round of funding
• 8% annual interest rolled up until conversion
• Convertible immediately on the next liquidity event
• Three year term

Peter Stephens, CEO of InVMA said "I am looking forward to working with the founders of InVMA to build on the successful launch and initial growth of AssetMinder sales and to establish AssetMinder as a leading product in remote predictive monitoring." 

Sarah Payne, Tern CFO and InVMA Chairman, said "Peter's commitment to join InVMA is an important milestone for the company and his wealth of relevant experience and software product knowledge will be invaluable as the team spearheads its next stage of growth and development.  His background of delivering digital transformation across industries and geographies makes him the ideal person to drive the transformation of InVMA into a leading product company.  InVMA is an exciting business, with a great reputation that is well positioned in the fast growing Industrial IoT market. The funding secured as part of the Future Fund initiative will enable a strong start to Peter's programme of growth."

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