Tern PLC (LON: TERN) shares jumped on Monday morning as the company said it has paid US$303,954 to its portfolio company Device Authority (DA), representing a convertible secure loan.
The AIM-listed investment company, specialising in the Internet of Things, said following this payment, Tern’s total convertible loan note position with DA is US$1.175mln.
The total funds secured by DA through this facility are US$425,000 from DA’s existing shareholders, including Tern.
Tern said in providing this support, DA’s shareholders are pleased by the continued progress the company is making in the form of partnership and the implementation of its KeyScaler platform.
The company said the third tranche of the convertible loan note accrues an interest coupon of 5% and is convertible automatically on an equity fundraising in DA of at least US$2.5mln to be completed before 28 September 2018.
Al Sisto, CEO of Tern, said: “Given the positive progress we have seen from DA through its recent partnership and product launches, we are pleased to utilise our solid cash position to support this existing company.”
In morning trading, Tern’s shares jumped 12.9% to 32.75p.