Cloud and mobile IT investment company Tern (LON:TERN) increased its investment in its subsidiary Cryptosoft.
Tern will invest a further £500,000 in the internet and machine-to-machine (M2M) security specialist by way of a loan facility for working capital as cash flow continues to increase.
Cryptosoft signed a small sales deal this month, and its partnerships with Device Authority and Thingworx have already created two new products.
The company is focusing on closing significant contracts with multi-nationals, but Tern noted that these larger deals take longer to convert.
Interest on amounts drawn down under the facility is around 5% and the loan is repayable at December 31, 2016.
Tern can also convert the loan into new ordinary shares of Cryptosoft at 0.33p at any time.