Shares of Tern PLC (LON: TERN) plunged 12% after announcing that its portfolio company Wyld Networks had begun trading on Sweden’s Nasdaq First North market in Stockholm.
The First North market has less stringent rules than the Nasdaq Stockholm AB, the primary market. All companies listed on the First North market have a certified adviser to ensure that they abide by all the rules and requirements.
Tern first announced the listing of Wyld Networks shares on Monday, 28 June 2021, with no reaction from the markets despite the newly-listed company raising 25 million Swedish Kroner ($3 million) as its shares closed the day at its opening price.
Wyld Networks intends to use the money raised to expand its engineering and commercial teams as it looks to establish a solid global footprint in the satellite and mesh network connectivity services.
Tern recently announced that it intends to cross-list on the OTCQB Market in the United States but would not be issuing any new ordinary shares as it continues to trade on London’s AIM market.
It appears investors interpreted today’s announcement as a potential loss of revenues for Tern. However, the company still holds 60.7% of Wyld Networks' issued share capital, which entitles it to an equivalent portion of its profits.
Today’s selloff in Tern shares seems like an overreaction, but only time will tell whether the company’s shares shall bounce back and head higher.
Tern share price.
Terns shares plunged 12% to trade at 24.20p, falling from Thursday’s closing price of 27.50p.
Should you invest in Tern shares?
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