Oracle Power PLC (LON:ORCP)

Oracle Power PLC (LON:ORCP)


Share Price
0.32 p
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Market Cap
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Oracle Power PLC RNS Release

Loan Agreement with Brandon Hill Capital Limited


RNS Number : 6580A
Oracle Power PLC
30 May 2019
 


 

30 May 2019

Oracle Power PLC

("Oracle" or "the Company")

 

£250,000 Loan Agreement with Brandon Hill Capital Limited

 

Oracle Power PLC (AIM:ORCP), the UK energy developer of a combined lignite coal mine and mine mouth power plant located in the south-eastern Sindh Province of Pakistan (Thar Block VI), announces that is has entered into a loan agreement with Brandon Hill Capital Limited ("Brandon Hill") (the "Loan Agreement"), a substantial shareholder of Oracle, to provide the Company with a working capital facility of up to £250,000 (the "Loan").

 

Key terms of the Loan Agreement

 

Pursuant to the terms of the Loan Agreement, £50,000 is immediately available for draw down by Oracle (the "Initial Draw Down"). Subsequent to the Initial Draw Down, the Company is able to draw down funds of up to £50,000 per month up to a maximum of £250,000. A coupon of 12% per annum (accruing daily) will be applied only to those funds drawn by the Company. There are no options, warrants or convertible aspects to the Loan and no fee is owed to Brandon Hill for providing the funds. The Loan is unsecured, with the principal and outstanding interest being repayable 12 months from the date of the Loan Agreement, or earlier, at Oracle's option, without penalty.

 

Save for the Initial Draw Down, any subsequent draw down must be approved in advance by Brandon Hill with regard to the proposed use of proceeds for each such draw down. The proceeds from all draw downs will be applied to operational and general working capital purposes.

 

 

Naheed Memon, CEO of Oracle Power, commented:

 

"We would like to thank Brandon Hill for their continued support of the Company as we look to finalise our transformational transaction with our Chinese partners. Significant progress has been made as per recent updates and we expect the funds under this Loan Agreement will be sufficient to reach Definitive Agreements with the Chinese Partners later this year.

 

I look forward to providing further updates over the next few months."

 

 

Related Party Transaction

 

The Board of the Company notes that Brandon Hill, in aggregate with its parent company, Optima Worldwide Group plc, and certain of the group's directors, is interested in, in aggregate, 21.9 per cent of the total voting rights of the Company and is therefore a substantial shareholder of the Company. Accordingly, entering into the Loan Agreement constitutes a related party transaction pursuant to Rule 13 of the AIM Rules for Companies. The Directors of the Company consider, having consulted with the Company's nominated adviser, Strand Hanson Limited, that the terms of the Loan Agreement are fair and reasonable insofar as its shareholders are concerned.

 

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

 

 

For further information please contact:

 

Oracle Power PLC

Naheed Memon

 

+44 (0) 203 580 4316

Strand Hanson Limited (Nominated Adviser)

Rory Murphy, James Harris, Jack Botros

 

+44 (0) 20 7409 3494

Brandon Hill Capital Limited

Oliver Stansfield

 

+44 (0)203 463 5000

Peterhouse Corporate Finance

Charles Goodfellow

 

+44 (0) 207 220 9791

Blytheweigh                                                  

Tim Blythe, Camilla Horsfall, Megan Ray

 

+44 (0) 207 138 3204

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
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