# Tern Plc Provides Update on the Company and its Portfolio

- Link: https://www.directorstalkinterviews.com/tern-plc-provides-update-on-the-company-and-its-portfolio/4121133495
- Published: 2023-11-21T07:14:11+00:00
- Author: Emily Johnson

**[Tern Plc](https://www.directorstalkinterviews.com/company/tern-plc/tern.l)** (
[LON:TERN](https://www.directorstalkinterviews.com/company/tern-plc/tern.l)), the
company focused on value creation from Internet of Things (“IoT”) technology businesses,
has provided an update on the Company and its portfolio companies.

**Portfolio Company Update**

_Device Authority Limited_ (“Device Authority”)

Current holding: 53.8%

Convertible loan notes of £0.7 million and short-term loan of £0.1 million

Device Authority is a global leader in Identity and Access Management (IAM) for 
connected device ecosystems, enabling organisations to achieve ‘Zero Trust’ security
at scale.  Zero Trust is a security framework requiring all users, whether in or
outside the organisation’s network, to be authenticated, authorised, and continuously
validated for security configuration and posture before being granted or keeping
access to applications and data.  Device Authority’s KeyScaler® platform is specifically
designed to automate and manage IoT machine identities throughout their entire lifecycle,
providing end-to-end device, data, and operational trust.

In an important evolution of the KeyScaler solution, Device Authority launched KeyScaler-
as-a-Service (“KSaaS”) in 2023.  Now KeyScaler’s primary delivery model, KSaaS’ 
infrastructure-free approach to automated supply chain security brings the full 
power of KeyScaler delivered as a cloud service. This frees up internal resources
for critical tasks and speeding up incident response.  Aside from the enhanced security
benefits, reducing the need for hard to find IoT security expertise and eliminating
manual processes, Device Authority believes that KSaaS is already delivering significant
returns on investment for its customers.  KSaaS has quickly established a strong
and growing customer base, including several large companies in the energy, automotive,
medical device, and government sectors.  Earlier this year, Device Authority was
awarded the Microsoft 2023 Rising Azure Technology Partner of the Year Award, a 
significant recognition of Device Authority’s impact in cloud-based security. 

More recently, Device Authority has also launched a preview of KeyScaler AI, a new
solution responding to market requirements for artificial intelligence (“AI”) security
and evolving customer needs.  KeyScaler AI leverages internal platform data and 
external threat intelligence to enable new levels of automated security response,
made possible by AI and machine learning.  It also creates an end-to-end trust chain
that establishes explicit trust between devices and the data they generate, thus
aligning to the US National Institute of Standards and Technology (NIST) Zero Trust
Architecture guidance.

Device Authority continues to receive recognition and endorsements from key analysts
including ABI Research and Quadrant Knowledge Solutions and has also recently been
recognized by Microsoft as a Global award winner for its SaaS based service KSaaS
in Azure, and in November 2023 as a key partner in Microsoft’s Mobility and Manufacturing
Industry Go To Market Strategy.

The business continues to scale, having appointed several new key personnel in the
US this year.  Device Authority is winning new customers including recently, FujiFilm,
GE Healthcare and Baker Hughes, whilst other existing customers are now scaling 
their use of Device Authority’s products.

For more information visit: [https://www.deviceauthority.com](https://www.deviceauthority.com/)

_FVRVS Limited_ (“FundamentalVR”)

Current holding: 12.1%

FundamentalVR, is a global leader in immersive surgical training, founded with the
mission to accelerate human capability in surgery and medicine through virtual technologies
to improve patient outcomes.  The company’s innovative approach helps accelerate
the industry shift towards digital surgery, addressing the competency gap at scale
in training for intelligent operating rooms.  Its purpose-built Fundamental Surgery
platform allows for full rehearsal of medical and surgical procedures, and its patented
HapticVR™ technology mimics the physical touch, weight, resistance, and feedback
of surgical actions and accurately simulates the sensations of soft tissue, bone
textures and muscle.

Over 15,000 competency-building sessions have been conducted by FundamentalVR globally,
which is accredited by and affiliated with institutions such as the American Academy
of Ophthalmology (AAO), American Academy of Orthopaedic Surgeons (AAOS), and the
Royal College of Surgeons of England. FundamentalVR remains committed to elevating
performance and training skilled surgeons and operating room teams at scale.

In September 2023, FundamentalVR was featured in Meta’s global campaign on the real
impact of virtual reality today.  In collaboration with their partner, Orbis International,
FundamentalVR is contributing to the metaverse by harnessing immersive technologies
to train surgeons on cataract procedures worldwide. For more information visit: 
[https://about.meta.com/metaverse/impact/](https://about.meta.com/metaverse/impact/).

FundamentalVR has continued to build its annual recurring revenues (ARR) during 
2023.  With important contract wins from both existing and new customers across 
a variety of procedural areas, including ophthalmology, endovascular and urology.
The company also continues to build awareness in the medical device marketplace 
and receive recognition for its leading platform.  It is building a healthy pipeline
of customers and new customer opportunities for the remainder of the year and beyond.

For more information visit: [https://fundamentalsurgery.com](https://fundamentalsurgery.com/)

_Wyld Networks AB (publ)_ (“Wyld Networks” or “Wyld”)

Current holding: 25.1%*

Wyld Networks, quoted on the NASDAQ First North Growth Market in Stockholm, enables
affordable connectivity across the globe in areas where wireless coverage is unavailable.
The company specialises in providing wireless connectivity between IoT sensors and
Low-Earth-Orbit satellites via its Wyld Connect solution. Wyld’s IoT network management
platform, Wyld Fusion, can be used in a diverse range of sectors and use cases including
energy, utilities, agriculture, logistics, maritime and environmental monitoring.

Shipping of Wyld Connect terminals, modules and modems began in October 2023, following
extensive in-field testing, and data is flowing via satellites to Wyld Fusion. Wyld
has customers on the network in North, Central and South America, Europe, the Middle
East and Australia.  With currently SEK92 million in orders and over 60 customer
and partner agreements signed to date, Wyld anticipate significant growth in 2024
as they continue to pioneer satellite IoT and meet the significant demand for data
in currently unserved areas.

Recent contracts and partnerships signed by Wyld Networks include:

·    with Argentinian agricultural technology company, IOF, to implement Wyld Connect
to manage assets in the field and provide ‘digital identity’

·    with PLF Australia to deploy Wyld Connect satellite IoT services in rural Queensland

·    with Vracity and Brinja to develop infrastructure asset monitoring in the Kingdom
of Saudi Arabia

·    with Novecom to deliver satellite IoT services in rural Australia. 

In addition, Wyld announced on 17 October 2023 that it had delivered a LoRaWAN (
Long Range Wide Area Network) satellite-to-satellite connectivity solution as part
of a joint European Space Agency (ESA) sponsored programme with Eutelsat and Thales
for telemetry and control to support satellite IoT networks.

For more information visit [www.wyldnetworks.com](https://wyldnetworks.com/)

_* Pursuant to Tern’s funding facility announced on 12 June 2023, under which £500,000
is currently drawn down, Tern is required to maintain in escrow shares in Wyld at
a value of not less than 1.5 times the value of outstanding amounts drawn down and
accrued interest, as security for the Facility._

_Talking Medicines Limited_ (“Talking Medicines”)

Current holding: 23.8%

Convertible loan notes of £0.2 million

Talking Medicines uses Advanced Data Science and Artificial Intelligence to empower
healthcare advertising agencies, enabling them to consistently win and retain their
Pharma clients whilst achieving improved productivity, with swift project delivery.
Talking Medicines is seeking to revolutionise the US$30Bn spent on healthcare marketing,
through unlocking strategic intelligence within conversational data.  Talking Medicines
empowers customers to gain strategic advantages in analysis, measurement, and enhanced
brand equity through structuring conversational data.

Talking Medicines is particularly focused on scaling its presence in the US, having
built out its sales operations in 2023 in New Jersey, New York City, and Philadelphia.
Significant customer wins include onboarding eight new global healthcare advertising
agencies who in turn have full coverage of the top 20 global pharmaceutical companies.

Talking Medicines has been recognized as the Gold Winner in the Artificial Intelligence/
Data Analytics Initiative category for ‘The Perfect Marriage of Curated Data + Specialized
Large Language Model in Drug-GPT™’ at the PM360 Trailblazer Awards 2023, run by 
the US pharmaceutical marketing trade publication PM360, which celebrates outstanding
achievement and innovation in healthcare marketing.

For more information visit: [https://talkingmedicines.com](https://talkingmedicines.com/)

_InVMA Limited_ (trading as “Konektio”)

Current holding: 28.3%

Konektio™ develops and provides Industrial IoT (“IIoT”) software via a Software 
as a Service (“SaaS”) model to the industrial and manufacturing sectors.  Their 
AssetMinder^(TM) software enables remote asset connectivity, monitoring and management,
to deliver condition-based monitoring, predictive maintenance, energy monitoring
and machine optimisation, providing insights that drive productivity improvements
and cost savings.

As announced on 8 November 2023, Tern has decided not to invest further in Konektio.
Tern announced on 26 May 2023 that Konektio had agreed a £2.5 million equity fundraise,
to be completed in two tranches.  The first tranche of £1.2 million (the “Konektio
First Tranche”) completed in May 2023 and the second tranche of £1.3 million (the“
Konektio Second Tranche”) is due for completion in Q4 2023. Tern announced on 26
May 2023 that it had committed to invest a minimum of £0.28 million in the Konektio
Second Tranche, with an option, at Tern’s sole discretion, to increase its investment
amount up to £0.4 million.  However, given the business performance of Konektio 
and, in particular, Konektio’s monthly recurring revenue growth not having met Tern’s
expectations, Tern decided not to invest in the Konektio Second Tranche.  As announced
on 26 May 2023, should Tern not fulfil its commitment to invest a minimum of £0.28
million in the Konektio Second Tranche, 75% of Tern’s holding in Konektio will be
transferred to a valueless class of Konektio deferred shares, which is anticipated
to take effect in due course.

Tern’s percentage holding in Konektio and its unaudited book valuation will be determined
when, and if, Konektio completes the Konektio Second Tranche and Tern will provide
an update in relation to this at the appropriate time.  In addition, Tern continues
to explore routes for potentially realising value from the Company’s remaining holding
in Konektio.

For more information visit: [https://konektio.com](https://konektio.com/)

_Sure Valley Ventures UK Software Technology Fund_ (“SVV2”)

Current holding: 5.9%

SVV2 is a venture capital fund investing in a range of private UK software companies
with a focus on companies in the immersive technology and metaverse sectors, including
augmented and virtual reality, artificial intelligence, and security.  SVV2 currently
has investments in two companies, RETìníZE Limited, a creative tech company based
in Belfast, and Opsmatix Systems Limited which trades as Jaid, an innovative technology
firm providing AI-powered human communication solutions.  The SVV2 team continues
to evaluate further potential investment opportunities in its target areas of immersive
tech, SaaS, cyber security and IoT.  Many of the opportunities being evaluated have
artificial intelligence underpinning their technology, which is in line with the
fund’s main investment strategy.

For more information visit: [https://surevalleyventures.com](https://surevalleyventures.com/)

**Tern plc’s Management and Governance**

At the Company’s AGM held on 29 June 2023 (the “AGM”) the resolutions to re-appoint
Al Sisto as a Director of the Company and to allow the Directors to allot securities
and disapply statutory pre-emption rights were not passed.  Although the other resolutions
passed, significant votes were also received against certain other resolutions.

Following the shareholder vote to not re-appoint Al Sisto as a director of the Company
at the AGM, Mr Sisto immediately ceased to be a member of the Company’s board (the“
Board”).  The Board accepted the results of the AGM’s shareholder vote, but then
canvased shareholder views, including the views of several larger shareholders who
were understood by the Company to have voted against the resolutions that were not
passed.

Following these discussions, on 10 August 2023, Tern announced a number of proposed
Board and management changes, which has resulted in the Board now comprising solely
of Non-Executive Directors, led by Ian Ritchie as Chairman, with Alan Howarth, who
chairs the Audit and Remuneration committees, and Sarah Payne who stepped down as
an Executive Director and Chief Financial Officer and Company Secretary on 15 September
2023.

This announcement also confirmed that Mr Sisto, together with Mr. Leith, who stepped
down as an Executive Director, would continue to be members of Tern’s management
team.  Mr. Sisto has retained the title of Chief Executive Officer because the Board
believes that it is important for Mr. Sisto to retain this title (while not being
a member of the Board) to allow him to effectively execute his role as the primary
liaison with the management and co-investors of Tern’s existing portfolio companies.

Following the changes announced on 10 August 2023, Tern’s Non-Executive Board now
makes the Company’s investment decisions and decides on Tern’s strategy in relation
to its portfolio companies. Mr. Sisto’s and Mr. Leith’s responsibilities are to 
implement the Board’s decisions in relation to the management and oversight of Tern’s
holdings in its portfolio companies.  Mr. Sisto and Mr. Leith work with the Company’s
portfolio companies and report back to the Board with information and updates (including
providing recommendations and advice) which are used to inform the Board’s decisions.
Mr. Sisto and Mr. Leith are primarily responsible for relaying the Board’s views
and decisions to the portfolio companies. In this capacity, as is common in the 
venture capital industry, Mr. Sisto and Mr. Leith sit, as Tern’s representatives,
on the boards of several of Tern’s portfolio companies, working with them to implement
the Board’s decisions, seeking to maximise value for Tern’s shareholders. 

All investment decisions or other material decisions are reserved for the consideration
of the Board, which meets on a regular basis to consider and vote on such matters,
with only the Board members having a vote in this respect.  Accordingly, Mr. Sisto
and Mr. Leith no longer have a role in the Board’s decisions.  Tern’s Non-Executive
Chairman, Ian Ritchie, is responsible for the running of the Board.  Further details,
including a summary of the key areas that are reserved for the Board, are contained
in the Company’s latest Corporate Governance Statement, available on the Company’s
website at www.ternplc.com/aim-rule-26/.

On 26 September 2023, following further shareholder consultations following the 
announcement of the Board and management changes, the Company held a General Meeting
at which the Directors were authorised to allot securities and to disapply statutory
pre-emption rights.

**Online Investor Presentation and Q&A Session**

Tern Plc will be hosting an online presentation and Q&A session at 5.30 p.m. GMT
today, Tuesday 21 November 2023.

Presenting will be members of Tern’s management team and management from Tern’s 
portfolio companies Device Authority, Wyld Networks and Talking Medicines.  This
session is open to all existing and prospective shareholders.  Those who wish to
attend should register via the following link where they will be provided with access
details:

[https://us02web.zoom.us/webinar/register/WN_Uouqd7FASNCpmPC1JS1QAQ](https://us02web.zoom.us/webinar/register/WN_Uouqd7FASNCpmPC1JS1QAQ)

Participants will have the opportunity to submit questions during the session, but
questions are welcomed in advance and may be submitted prior to 3 p.m. GMT on 21
November 2023 to: [tern@investor-focus.co.uk](https://www.directorstalkinterviews.com/tern-plc-provides-update-on-the-company-and-its-portfolio/tern@investor-focus.co.uk).

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