Wyld Networks, a Tern investee, has announced a contract to work with the NHS in Scotland to help care homes reduce the spread of COVID-19. Although the deal itself is likely to be relatively small (no financial details are given), we believe that the agreement demonstrates Internet of Things (IoT) in action, in a way and at a time that could gain material public and investor attention. Tern has simultaneously announced the transfer of a £1.1m debt from Wyld into a Convertible Loan Note form.
Deal announced Wyld has today announced a deal with Highland Health Ventures Ltd which in turn has a collaboration agreement NHS Highland. Wyld will deploy mesh networks in care homes in Scotland with the aim of managing access control and monitoring the contact between residents, staff and visitors within the care home setting. We explain overleaf, but in essence a “mesh network” is a network of fixed and mobile devices (including mobile phones, wristbands and fixed “beacons”) which can accurately and in real time monitor location of device relative to the others. By analysing and acting upon the relative locations of devices (and people) the network can be used to modify behaviour and improve adherence to social distancing objectives.
Signal value Clearly, given the COVID-19 pandemic and its disproportionate impact on the vulnerable care home community, such a project could generate material and measurable benefits – highlighting both the value within Wyld, and more broadly the exceptional possibilities afforded by IoT. We see this as an exceptionally good example of IoT in a real-world setting providing benefits that would otherwise be almost impossible.
Tern loan altered to Convertible At the same time as the announcement of the agreement above, Tern has announced the transfer of £1.1m of debt (owed by Wyld to Tern) into a Convertible Loan Note structure – terms include a 20% discount to any future material fundraise or exit by Wyld. Tern’s investment in Wyld (prior to today’s news) was recently valued at some £0.9m (the previously-declared value of the debt).
Overall, we believe that today's news is extremely positive, and that both the Wyld agreement and Tern’s subscription for the convertible loan note are material moves forward for the group. We look forward to watching the development of both Tern and Wyld over coming months.