Tern Increases Investment in Talking Medicines and Expands Shareholder Return Policy

Tern plc (LSE:TERN) has invested £117,195 in a new issue of unsecured convertible loan notes by portfolio company Talking Medicines, increasing the principal value of its holding to £234,389 while retaining its 23.8% equity interest. The loan notes carry an annual interest rate of 10% and mature in 2029. Following the transaction, Tern’s total investment in Talking Medicines through convertible loan notes has risen to approximately £1.02 million, highlighting the company’s continued support for the AI-powered healthcare advertising business despite its historical losses.

At the same time, Tern has strengthened its commitment to shareholder returns by increasing the proportion of proceeds it intends to distribute following significant portfolio exits. Under the revised policy, the company plans to return at least 70% of net proceeds from any individual portfolio disposal exceeding £1 million, up from the previous commitment of 50%. Management said the change reflects growing confidence in the maturity of its investment portfolio while ensuring sufficient capital remains available to fund operations and support future investment opportunities.

The company’s outlook continues to be affected by weak financial performance, including ongoing losses and negative cash flow. Valuation also remains challenging, with a negative price-to-earnings ratio and no dividend yield currently available. Technical indicators provide a more balanced picture, showing some longer-term improvement relative to key moving averages, although overall momentum remains mixed.

About Tern plc

Tern plc is an AIM-listed investment company that focuses on identifying and supporting high-growth, early-stage businesses developing Internet of Things (IoT) technologies. Its investment portfolio includes Talking Medicines, an artificial intelligence and data analytics company that helps healthcare advertising agencies deliver more effective campaigns for pharmaceutical clients in a global healthcare advertising market worth more than US$23 billion.