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(Sharecast News) - Tern announced on Friday that it has raised 0.22m through a placing of 19,230,769 new shares at 1.15p each, representing a 9.8% discount to the closing price on 20 February.
The AIM-traded firm said the new shares would account for 3.53% of its enlarged share capital following admission to AIM, which was expected on 26 February.
It said the proceeds would be used to fund its commitment to the Sure Valley Ventures Enterprise Capital Fund (SVV2), provide additional support to its portfolio companies, and cover general corporate expenses.
Tern previously committed to investing up to 5m in SVV2 over 10 years, and currently holds a 6.1% stake in the fund, valued at 0.75m as of 21 February.
SVV2, which focuses on UK software companies in areas such as augmented reality, artificial intelligence and security, had drawn down 16.56m to date, with 65.27m in undrawn commitments remaining.
In the fourth quarter of 2024, it made follow-on investments in creative tech company RETnZE of 0.5, and AI-powered communication firm Jaid of 0.8m.
Other key holdings included Captur, Vortex IQ, and Ittybit.
During the second half of 2024, SVV2 made four new investments, committing 1m to AI robotics startup Phinxt Robotics in July, 1.5m to monitoring firm Purple Transform in August, 0.5m to AI-powered education company Stylus Education in August, and 1m to drone security firm Vizgard in December.
The fund expected 2025 to be its most active year, targeting six to eight new investments along with follow-on rounds, with projected drawdowns of 15% to 20% of its total capital.
Following admission of the new shares, Tern said its total issued share capital would increase to 544,223,831 ordinary shares.
At 1330 GMT, shares in Tern were down 1.96% at 1.25p.
Reporting by Josh White for Sharecast.com.