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The Insanity of Tern raising money at a discount to invest in another small tech investor at market price

By Tom Winnifrith | Tuesday 7 January 2025


Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.


Tern (TERN) raised £400,000 gross of expenses on 16 December 2024 at a discount of 16% to the then latest available share price. After paying 5% or 6% for costs of the placing the effective discount was more than 20%. Then on 2 January 2025 Tern announced that it had spent £175,000 of that cash investing into Sure Ventures Plc placing at the mid market price.
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