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(Alliance News) - Oracle Power PLC on Monday said it raised GBP500,000 through a placing to help support its green hydrogen project in Pakistan, for which it also announced a potential supply and delivery agreement.
Oracle Power is a power and natural resource project developer focused on the Sindh providence of Pakistan. Shares in the firm were down 15% at 0.20 pence on Monday afternoon in London.
Oracle said it placed 294.1 million shares at a price of 0.17p each to raise GBP500,000 in proceeds. The placing price represented a 29% discount to the company's closing price of 0.24p on Friday.
The company said the proceeds will be primarily used to support the advancement of its Green Hydrogen project in Pakistan.
Separately on Monday, Oracle said it signed a memorandum of understanding with Emirates Global Aluminium PJSC, through its joint venture Oracle Energy Ltd, to discuss and negotiate the potential supply and delivery of 50,000 tonnes of green hydrogen from this project.
The term of the MoU is for one-year from January 30.
Oracle said that if the negotiations are successful, it intends to sign a binding agreement regarding the project during the 2023 UN Climate Chang Conference, to be held from November 30 to December 12.
Chief Executive Naheed Memon said the signing of the MoU was a "significant step towards mitigation of financing risk for the Green Hydrogen project, as well finding a secure place for our project in the global supply for Green Hydrogen."
"We are now looking toward the next stage in the project's development as we move forward with detailed technical and financial feasibilities. With this financial support, combined with that from His Highness Shaikh Ahmed Dalmook Al Maktoum, I am confident we will be able to expedite the development of this ground-breaking and globally significant project," he added.
Ahmed Dalmook Al Maktoum owns 70% of Oracle Energy through Keheel Energy FZE. Oracle Energy is a joint venture between Oracle Power and Ahmed Dalmook Al Maktoum.
By Heather Rydings, Alliance News senior economics reporter
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