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Tern – Wyld Networks 3rd quarter results and they are utterly appalling!

By Tom Winnifrith, the Sheriff of AIM | Tuesday 30 November 2021

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.

Today saw Tern (TERN) investee Wyld Networks publishes its 3rd quarter results and there was an English version available as well.  For some reason Tern managed to not issue an RNS to refer to the results. I can’t think why.

All the figures are expressed in Swedish Krona and at 30 September 2021 there approximately 11.8 Krona to one British pound

Sales in Q3 were SKK 9,000 (yes that is right, about £762) and SKK 1,184,000 for the nine months.  Other income was SKK 2,118,000 and represents a conservative estimate of the R&D Tax credit receivable from the UK government.

Operating costs for the nine months ended 30 September were SKK 25,459,000 and finance costs were SKK 194,000.  The loss for the 9 months ended 30 September 2021 was SKK 22,351,000.

The company indicated that the average number of employees during the 3rd quarter was 14 and there were 23 consultants.

The balance sheet which now reflects the IPO proceeds raised in July 2021 showed net assets of SKK 14,580,000.

The cash burn in the nine months was SKK 20,346,000 and period end cash was £25,867,000 following entering to a long-term loan entered into the period of SKK 12,000,000.  The loan is repayable in three parts starting April 2022.   

Tern’s interim report explains that the loan was from Formue Nord Fokus A/S.  The loan was also accompanied by issue of Warrants to the Lender. Nigel Somerville highlighted the expensive terms of the loan in his Shareprophets article on Tern of 25 August 2021 as being 1% per cent per calendar month plus set up fees of 4%.

Nigel also noted that the repayment terms were not described.  I pose the question of whether the loan a convertible loan note because if you look up the Formue Nord Fokus A/S website using a modern browser you can see from the translation that one of its services is “We offer long-term convertible loans to companies that want to secure financing 1-5 years into the future and thereby postpone dilution from emissions.” Capital for listed companies | Wealth North (

In the immediate future Wyld look set to be able to manage cash wise because it has also issued three series of warrants.  Each tranche is exercisable at a price of 70% of the volume weighted average price of the Company’s shares but not in excess of prices quoted below:


Exercise period

Number of warrants

Max exercise price


Max cash receivable SKK 000

Current trading price of warrants


22 March to 4 April 2022






6 to 19 December 2022






2 to 15 May 2023






Wyld’s quoted share price today was 14.42 SKK so it looks set to be able to raise enough cash for the time being to carry on trading because the warrants holders are able to buy shares at a 70% VWAP which means Wyld is pretty much guaranteed some cash from the warrant holders.  It also means that Tern is on the hook to pony up more cash to maintain its stake in Wyld in due course.

Tern valued its 60.7 % shareholding in the Wyld at £4.7 million in its interim results for the six months ended 30 June 2021.  This equates to a value of £7.74 million for a 100% holding or SKK 91 million versus a current market capitalisation quoted of SKK117 million for its ordinary shares so an uplift but only 30% over Tern’s valuation in June 2021.  The Bulletin Board Morons would have you believe that Tern should be valued at many multiples of its book value and that clearly isn’t true for the joke that is Wyld. Anyone continuing told hold Tern shares in the belief that it should trade at amultiple of NAV is bonkers

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