Tern PLC (AIM:TERN) shares slid 9% after the company warned that failure to approve share issuance resolutions at its upcoming AGM could force short-term asset sales and reduce shareholder value.
The resolutions, to be voted on 30 June, would grant directors the power to issue up to 200 million new shares, about 35% of the current share capital, and bypass pre-emption rights on half of that amount.
Tern’s board described the vote as a “pivotal choice,” arguing that the authority to raise capital swiftly is critical for funding portfolio companies, preventing dilution, and securing better investment terms.
Without it, Tern may be forced into potentially undervalued asset disposals.
The company also announced that Ian Ritchie will retire as chairman after the AGM, with Jane McCracken set to become interim chair, pending her re-election.
The board said it intends to seek an additional non-executive director post-meeting to strengthen governance.
The stock fell 0.16p to 1.64p.