Tern PLC (LON:TERN) has raised approximately £2.55mln through a placing at 7p with warrants attached.
Institutional demand was strong and the placing oversubscribed, said Tern, with applications scaled back.
Most of the money (£2mln) has been earmarked for Device Authority Ltd, an internet of things security specialist formerly called Cryptosoft and acquired by Tern in 2014.
Tern booked a substantial increase in the value of its stake in Device Authority in its latest interim figures.