Tern Plc Faces Funding Challenges with SVV2 Commitment

Tern plc ( (GB:TERN) ) has issued an update.

Tern Plc has announced an update regarding its capital commitment to Sure Valley Ventures Enterprise Capital Fund LP (SVV2). The company has invested approximately £1.3 million into SVV2 but faces challenges in meeting further capital calls due to insufficient funds and limited access to future funding. As a result, Tern has requested relief from its funding obligations, leading to its classification as a ‘defaulting investor’ under the SVV2 Limited Partnership Agreement. This status may affect Tern’s rights to distributions and recovery compared to non-defaulting investors. Despite these challenges, Tern aims to maintain its focus on protecting shareholder interests and long-term value creation from its key portfolio companies.

The most recent analyst rating on (GB:TERN) stock is a Hold with a £0.50 price target. To see the full list of analyst forecasts on Tern plc stock, see the GB:TERN Stock Forecast page.

Spark’s Take on GB:TERN Stock

According to Spark, TipRanks’ AI Analyst, GB:TERN is a Neutral.

Tern plc’s overall stock score is primarily impacted by its poor financial performance, characterized by declining revenue and negative profitability. Technical analysis also indicates a bearish trend, further weighing down the score. The valuation is unattractive due to the negative P/E ratio and lack of dividend yield. The absence of earnings call and corporate events data means these factors do not influence the score.

To see Spark’s full report on GB:TERN stock, click here.

More about Tern plc

Tern Plc is an AIM-quoted investment company that focuses on investing in technology companies. Its key portfolio companies include Device Authority, FundamentalVR, and Talking Medicines.

Average Trading Volume: 2,285,471

Technical Sentiment Signal: Sell

Current Market Cap: £3.03M

Find detailed analytics on TERN stock on TipRanks’ Stock Analysis page.