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(Alliance News) - Oracle Power PLC on Thursday said the private office of Sheikh Ahmed Bin Dalmook Al Maktoum has agreed to invest GBP500,000 in a GBP700,000 placing priced at 0.25 pence per share.
Shares in Oracle Power jumped 59% to 0.37 pence in London in midday trading.
The placing was arranged by Brandon Hill Capital Ltd. If shareholder approval is granted, the private office will hold 200.0 million shares in the lignite mineral resource and mine mouth power plant developer. It will also be issued with 300.0 million warrants exercisable at the same 0.25p price for a two year period.
Once both placing stage are complete, the private office will hold an approximately 11.5% stake in Oracle Power's enlarged share capital. Exercising all warrants would increase this to 22%.
Outside of the private office's contribution, Oracle Power has raised the other GBP200,000 of its GBP700,000 placing from other investors, including a GBP40,000 subscription by Chief Executive Naheed Memon and GBP10,000 subscription by Chair Mark Steed. These subscriptions will result in an 80.0 million share issue.
The aim of the placing is to provide general working capital in order to progress activities in Pakistan, where Oracle's power plant is located.
Memon said: "We are honoured and delighted to welcome His Highness Sheikh Ahmed Bin Dalmook Al Maktoum as a shareholder in Oracle. His extensive network and global relationships are expected to help the company as it seeks to unlock the inherent value of Block VI and its sizeable coal resources.
"As stated previously, Oracle is engaged in ongoing discussions with other state-owned enterprises in both Pakistan and China which have expressed a willingness to provide financial and technical support in the event Block VI was included in a coal gasification to fertiliser initiative, which has now been acknowledged by both governments. Following today's announcement, the company will now seek to advance these discussions towards a positive conclusion.
"We believe this is a truly exciting time for the company and I look forward to updating the market on subsequent developments."
By Anna Farley; annafarley@alliancenews.com
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