Tern Plc (LSE:TERN) has reached a settlement agreement with the General Partner of Sure Valley Ventures Enterprise Capital Fund LP (SVV2), resolving outstanding claims and potential financial liabilities associated with its former investment in the fund.
The AIM-listed technology investment company confirmed that it has paid £73,740 under the agreement, bringing an end to its financial obligations relating to SVV2.
The settlement removes a previously disclosed contingent liability that Tern had estimated could reach approximately £200,000. The company confirmed that no further payments or commitments to the fund are required following completion of the agreement.
Tern had previously sought relief from its funding commitments to SVV2, subsequently being classified as a defaulting investor under the fund’s arrangements.
As a consequence, the company’s partnership interest in SVV2 was subject to forfeiture or transfer, with Tern expecting to receive minimal consideration for its former holding.
The settlement resolves the outstanding matters associated with that process, including any remaining claims arising from the company’s participation in the fund.
According to Tern, the agreement provides certainty regarding its financial exposure to SVV2 and allows management to concentrate on its existing investment portfolio.
The board intends to prioritise the allocation of capital and management resources towards Tern’s directly held Internet of Things (IoT) technology businesses, rather than maintaining commitments to the external venture capital fund.
Management believes its direct portfolio companies offer opportunities for long-term value creation, particularly where Tern can exercise greater influence over operational and strategic development.
The company said the settlement is consistent with its strategy of focusing resources on existing portfolio investments and supporting their development.
Following the £73,740 payment, Tern has confirmed that it holds no remaining obligations to SVV2.
About Tern Plc
Tern Plc is an AIM-listed investment company focused on businesses developing Internet of Things technology and related digital solutions.
The company invests in and supports technology businesses through its portfolio holdings, with a strategy centred on developing the value of its existing investments.
Tern prioritises direct investments in portfolio companies where it can participate in their strategic development and allocate capital according to its investment objectives.
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