Shares in Tern PLC (AIM:TERN) fell 17% to 0.63p on Tuesday after the AIM-quoted Internet of Things (IoT) investment company launched an open offer to raise up to £643,609 through the issue of new shares at a 20% discount to the prevailing price.
The company is offering shareholders one new share for every seven existing shares held at an issue price of 0.60p, representing a discount to Monday's closing price of 0.75p.
Up to 107.27 million new shares will be issued under the offer, which is not underwritten, meaning there is no guarantee the full amount will be raised if shareholders choose not to participate.
The open offer is conditional on shareholder approval at a general meeting, with admission to AIM and the start of dealings in the new shares expected on 11 May 2026 to resolutions being passed. It is open for acceptance until 7 May, with full details and terms to be set out in a circular to be sent to shareholders later on Tuesday.
Tern said that any open offer shares not taken up by qualifying shareholders may be allotted by the directors at their discretion to third parties for cash or non-cash consideration, including to raise working capital, satisfy debts, or issue warrants and share options.
The company cautioned that any such allotments would dilute existing shareholders' interests and may be made without further shareholder approval, provided they occur before the conclusion of the 2026 annual general meeting or 1 July 2026, whichever is earlier.
Tern focuses on building value from investments in IoT technology businesses.