ORACLE POWER PLC

Capital/Financing Update • Sep 25, 2017

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RNS Number : 6368R

Oracle Power PLC

25 September 2017

25 September 2017

 Oracle Power PLC

("Oracle" or the "Company")

£1m Loan Agreement with Substantial Shareholder Brandon Hill Capital Limited

Oracle Power PLC (AIM: ORCP), the UK energy developer of a combined lignite mineral resource and mine mouth power plant located in the Thar desert in the south-east of Sindh Province, Pakistan, is pleased to announce that it has entered into a loan agreement (the "Loan Agreement"), to provide the Company with a working capital loan facility of up to £1,000,000, with its substantial shareholder Brandon Hill Capital Limited (the "Loan").

Under the Loan Agreement, Oracle is able to draw down funds of up to £100,000 per month. A coupon of 12% per annum (accruing daily) will be applied only to those funds drawn by the Company and will be payable quarterly in arrears or, at the option of Oracle, in full when the drawn principal is repaid. There are no options, warrants or convertible aspect to the Loan and no fee is owed to Brandon Hill Capital Limited for providing the funds. The Loan is unsecured. The Loan principal and outstanding interest is repayable 12 months from the date of the Loan Agreement, or earlier, at Oracle's option, without penalty.

The Board of the Company notes that Brandon Hill Capital Limited, in aggregate with its parent company, Optima Worldwide Group PLC, is interested in 13.64 per cent of the total voting rights of the Company and is therefore a substantial shareholder of the Company. Accordingly, 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, Grant Thornton UK LLP, that the terms of this transaction are fair and reasonable insofar as its shareholders are concerned.

Shahrukh Khan, CEO, commented:

"We would like to thank Brandon Hill Capital Limited for its continued support. In the current climate we believe the terms of the Loan are attractive, provides the Company with non-dilutive capital and reaffirms the potential offered by the Company and its flagship Thar Coal Project in Pakistan.

With this facility in place, the Company now has the flexibility to continue to progress its ongoing discussions with various parties with regards to the full funding of the 660MW Thar Project. Following its elevation to the Priority List of the China-Pakistan Economic Corridor, the Company has seen significant interest from potential financiers of both debt and equity. We look forward to updating the market on subsequent developments."

For further information please contact:

Oracle Power PLC Shahrukh Khan	+44 (0) 203 102 4807
Brandon Hill Capital Limited (Joint Broker) Oliver Stansfield	+44 (0)203 463 5000
Peterhouse Corporate Finance (Joint Broker) Charles Goodfellow	+44 (0)20 7220 9791
Grant Thornton UK LLP (Nominated Adviser) Salmaan Khawaja, Richard Tonthat, Daniel Bush	+44 (0) 207 373 5100
Blytheweigh                                                   Tim Blythe, Camilla Horsfall, Megan Ray	+44 (0) 207 138 3204
Fortbridge Consulting                                                   Matt Beale, Bill Kemmery	+44 (0)7966 389196

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.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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