Tern raises £700,000 and acquires 18.3% stake in FundamentalVR
Source - SMW
Tern raised £700,000 before expenses through an unconditional placing of approximately 3.7 million new shares of 0.02p each at 18.5p per ordinary share.
This, together with the funds raised on 8 May, facilitated the acquisition of a 18.3% holding (post new money) in FVRVS (FundamentalVR) for £798,309.
- FundamentalVR built an immersive simulation application training platform for surgeons which creates virtual reality (VR) simulations of procedures
- Provides Tern with exposure to the rapidly growing medical simulation market, which is anticipated to grow to $2.3bn by 20211
- Based on FundamentalVR's latest statutory accounts for the year ended 31 December 2016, FundamentalVR had net assets of £96,940 and a retained profit of £63,768 for the year
- Fundamental VR will use the funds to develop a SaaS delivery systems, enabling it to add to its surgical simulations and broaden its customer base
- Represents the first of its kind for Tern due to FundamentalVR being in the IoT healthcare services market and given that its applications use VR and haptic (the sense of touch) devices
The transaction is in line with the company's strategy to increase its portfolio to 12 investments and brings the number of Tern's portfolio companies up to seven.
Tern CEO Al Sisto said: "We are truly excited to add FundamentalVR to our portfolio of potentially transformational companies.
"FundamentalVR is a highly disruptive company with the potential to improve patient outcomes in the medical industry.
"Its experienced management team has the credentials to steer FundamentalVR to capitalise on the rapidly growing medical simulation market and in the process create shareholder value for Tern.
"We look forward to working with them to help them achieve their ambitions of building a world leading SaaS-based immersive surgical simulation platform using haptic intelligent feedback via VR to respond to surgeons in real-time.
"With a range of customers already engaged and generating revenue, they have a great platform from which to grow."
FundamentalVR CEO Richard Vincent said: "We are delighted to secure an investment from Tern.
"This investment in our business will help to accelerate us into market and build out a market leading SaaS based training business.
"Less than half of one percent of surgeons worldwide have any day-to-day access to surgical simulation.
"Through our platform, Fundamental Surgery we believe that our strategy of high-end simulation through low-cost immersive technology will help to dramatically change this over the coming years and put quality training within arm's reach of surgeons across the globe. "