Tern (LSE:TERN) shares rocketed in Tuesday's trading, rising 31.1% to 1.18p, after it announced a convertible loan note investment that increases its stake in theTalking Medicines AI venture.
The CLNs were issued in return for cancellation of circa £87,000 owed to Tern and a fresh cash investment of approximately £48,000 funded from Tern’s recent Open Offer.
Talking Medicines, which uses AI and advanced data science to serve healthcare advertising agencies, issued CLNs that carry 10% per annum interest, convert on an exit or a fundraising of at least £2 million at a 20% discount to the exit or fundraising price, and otherwise mature on 21 November 2029 in line with Tern’s existing convertible notes.
Following the issue, Tern’s equity stake in Talking Medicines remains unchanged at approximately 23.8% while its total convertible loan note holding rises to approximately £0.79 million, and as at 30 June 2025 Tern’s equity and CLN holding in Talking Medicines had an unaudited book value of £2.1 million.
"We are pleased to be able to provide further funding to Talking Medicines which will assist their continued growth trajectory," Jane McCracken said.
Talking Medicines reported unaudited net liabilities of approximately £1.4 million and an unaudited loss of approximately £0.51 million for the year ended 31 December 2024, figures Tern says are historic and not representative of current trading.
The CLNs will convert at a 20% discount on an exit or qualifying fundraising of at least £2 million or otherwise mature on 21 November 2029.
