Tern PLC (LON:TERN) has made a further £1.1mln investment in virtual reality training company FundamentalVR, boosting its shares.
The AIM-listed internet of things investment group said on Tuesday that the additional investment increased its holding in FundamentalVR to 34.7% from 18.3%.
READ: Tern slumps as investee company Device Authority rows back forecasts
The move follows FundamentalVR's recent signing of a three-year joint development agreement with the Mayo Foundation for Medical Education and Research in the US. FundamentalVR and the Mayo Foundation plan to collaborate on a range of simulation and education products with an initial focus on general surgery.
Under the joint development agreement, the Mayo Clinic will receive royalties on the sale of jointly developed licensed products and will receive other consideration from FundamentalVR upon achieving certain milestones.
Tern said FundamentalVR had proven its ability to rapidly deliver on its strategy since its initial investment.
“They have an ambitious strategy, forward revenue visibility and now, a prestigious content partner that recognises the ability of their platform to revolutionise surgical training and ultimately, patient outcomes,” Tern CEO Al Sisto said in a statement.
“We are pleased with their execution and the value it is creating in the business and therefore delighted to have increased our ownership position."
Shares in Tern were 5.2% up at 21.60p in morning trade.