REG - Oracle Power PLC - £363,000 Fundraising & Appointment of Joint Broker

Oracle PowerAnnouncement

22/06/2023 07:00

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RNS Number : 5159D  Oracle Power PLC  22 June 2023

This announcement contains inside information for the purposes of Article 7 of
EU Regulation No. 596/2014, which forms part of United Kingdom domestic law by
virtue of the European Union (Withdrawal) Act 2018, as amended by virtue of
the Market Abuse (Amendment) (EU Exit) Regulations 2019.

 

22 June 2023

 

Oracle Power PLC

("Oracle", the "Company" or the "Group")

 

£363,000 fundraising to support advancement of the Company's green hydrogen
JV project

 

Appointment of Joint Broker

 

Oracle Power PLC (AIM: ORCP) is pleased to announce that it has successfully
raised gross proceeds of, in aggregate, £363,000 by way of a placing of
323,000,000 new ordinary shares of 0.1p each in the capital of the Company
("Ordinary Shares") (the "Placing") and a subscription for 40,000,000 new
Ordinary Shares (the "Subscription") both at a price of 0.1p per Ordinary
Share (the "Issue Price") (together, the "Fundraising").

The net proceeds of the Fundraising will be utilised primarily to support the
advancement of the Company's green hydrogen project (the "Project") via its
joint venture with His Highness Sheikh Ahmed Dalmook Al Maktoum, and for
general working capital purposes.

The funds were raised from both new and existing investors, including the
Company's largest shareholder, His Highness Sheikh Ahmed Dalmook Al Maktoum
through the Subscription.  His Highness also continues to invest
significantly and directly in the Project by funding his 70 per cent. share of
the joint venture.  The Fundraising has utilised the Company's remaining
headroom for such share issuance.

Oracle continues to make rapid progress on advancing the Project.  Most
recently, Oracle has signed strategic Memoranda of Understanding ("MoUs") with
State Grid Corporation of China through its subsidiary, to potentially
develop, finance, construct, operate and maintain the Project, and with
PetroChina International (Middle East) Company Limited for the potential
future off take of green hydrogen.

The Fundraising has been arranged through Global Investment Strategy UK
Limited ("GIS") with whom the Company has entered into a placing agreement
dated 21 June 2023 (the "Placing Agreement") pursuant to which GIS, as agent
for the Company, has procured placees for the 323,000,000 new Ordinary Shares
at the Issue Price. Accordingly, in connection with the Fundraising, GIS will
receive 21,780,000 warrants over new Ordinary Shares, exercisable at the Issue
Price for a period of 2 years from the date of the Placing.  GIS has also
been appointed as joint broker to the Company with immediate effect.

Naheed Memon, CEO of Oracle, commented:

"We continue to make significant progress in advancing our green hydrogen
strategy in Pakistan and today's fundraising will enable us to continue this
upward trajectory. The funds raised will be utilised to support our green
hydrogen initiative, whilst also providing additional working capital to,
inter alia, progress our other portfolio projects. We are very pleased with
the continued support of His Highness, which clearly demonstrates his
support  for our green hydrogen project and I look forward to updating the
market in the near future with regard to further developments."

 

Related Party Transaction

His Highness Sheikh Ahmed Dalmook Al Maktoum is a substantial shareholder of
the Company, as defined by the AIM Rules for Companies ("AIM Rules"), with a
current holding of 500,000,000 Ordinary Shares, representing approximately
14.83% of the Company's existing issued share capital. Accordingly, His
Highness Sheikh Ahmed Dalmook Al Maktoum's additional investment via the
Subscription, representing approximately 11.0% of the Fundraising, constitutes
a related party transaction pursuant to AIM Rule 13. The Directors of the
Company, having consulted with the Company's Nominated Adviser, Strand Hanson
Limited, consider that the terms of his participation in the Fundraising are
fair and reasonable insofar as the Company's shareholders are concerned.
Following Admission (as detailed below), His Highness Sheikh Ahmed Dalmook Al
Maktoum will be interested in 540,000,000 Ordinary Shares representing
approximately 14.46% of the Company's enlarged issued share capital.

 

Admission to Trading and Total Voting Rights

Application will be made to the London Stock Exchange for the 363,000,000 new
Ordinary Shares pursuant to the Fundraising (the "Fundraising Shares") to be
admitted to trading on AIM ("Admission"), which will rank pari passu with
the existing Ordinary Shares. Admission is expected to become effective and
dealings in the Fundraising Shares commence at 8.00 a.m. on or around 27 June
2023.

Following Admission, the total issued share capital of the Company will be
3,735,415,387 Ordinary Shares, with no shares held in Treasury. Therefore, the
total voting rights in the Company following Admission will be 3,735,415,387
and this figure may be used by shareholders in the Company as the denominator
for the calculations by which they will determine if they are required to
notify their interest in, or a change in their interest in, the share capital
of the Company under the FCA's Disclosure Guidance and Transparency Rules.

 

 

*ENDS*

 

For further information:

 

 Oracle Power PLC                                              +44 (0) 203 580 4314

 Naheed Memon - CEO
 Strand Hanson Limited (Nominated Adviser & Joint Broker)      +44 (0) 207 409 3494

 Rory Murphy / Matthew Chandler / Rob Patrick

 Global Investment Strategy UK Limited (Joint Broker)

 Samantha Esqulant                                             +44 (0) 207 048 9432
 Buchanan (Financial PR)                                       +44 (0) 207 466 5000

 Bobby Morse / Oonagh Reidy / Abigail Gilchrist

 

 

 

About Oracle Power PLC:

 

Oracle Power PLC is an international natural resource and power project
developer quoted on London's AIM market. The Company currently has two areas
of focus: Western Australia and Pakistan. The Company is active in the energy
industry in Pakistan and is working to establish a green hydrogen production
facility through Oracle Energy Limited, a joint venture with His Highness
Sheikh Ahmed Dalmook Al Maktoum.

 

Oracle Energy has been set up as the project development company and is funded
on a 70:30 basis by Kaheel Energy (100% owned by His Highness Sheikh Ahmed
Dalmook Al Maktoum) and Oracle Power respectively.  The project development
company provides a vehicle to support the accelerated development of the green
hydrogen project to meet the growing international and domestic demand for
green hydrogen and clean energy.

 

The Company also continues to progress the development of its Thar Block VI
Project in south-east Pakistan involving a potential future mine, power plant
and coal gasification operation.

 

In Australia, its primary focus is the Northern Zone Gold Project, in
partnership with Riversgold Limited, a specialist mining company listed on the
ASX.  This project is located 25km east of the major gold mining centre of
Kalgoorlie, the home of the 'Super Pit' mine, the second largest gold mine in
Australia.  Northern Zone has a current Exploration Target of 200-250Mt at
0.4-0.6g/t Au for between 2.5 - 4.8Moz gold.

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