Tern investee Device Authority begins fundraising activity

Internet of things (IoT) investment company Tern announced on Friday that its investee company, Device Authority, began its fundraising activity with US Capital Partners on 28 September to raise new equity through a private placement offering.

The AIM-traded firm said the investment opportunity was initially available to registered accredited investors, and would be open for up to 120 days.

As it had previously announced, the minimum total subscription to be accepted by Device Authority through the private placement would be $2.5m, out of a total$10m offering, and first close was now expected to be during October.

“The fund-raising attributes a pre-money valuation to Device Authority of$36m or 75 US cents per share, an increase from the$23m or 47 cents per share at the last equity issue in October 2016,” Tern’s board said in its statement.

“Upon completion of the $2.5m first close, Tern's ownership will be 53.2%,” it confirmed.