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(Alliance News) - Coal miner Oracle Power PLC said on Monday that it has raised GBP500,000 through a placing to repay the outstanding on a loan facility agreed with natural resources investor Brandon Hill Capital Ltd.
The company issued 200 million new shares priced at 25.00 pence. Proceeds will be used to repay the GBP100,000 outstanding from the Brandon Hill loan and the GBP1,594 in interest accrued. The company will have no material debt after the payment is made, it said.
Shares in the company were down 17% at 0.26 pence each in London on Monday afternoon.
Brandon Hill, with two of its directors Neal Griffith and Oliver Stansfield, subscribed for a total of 45.4 million Oracle Power placing shares, GBP113,595 altogether. This would take Brandon Hill's total stake in the firm to 23%, or 328.8 million shares.
Oracle's Chair Mark Steed subscribed for 12 million shares, taking his total to 14.1 million company shares. Director Andreas Migge subscribed for 4.4 million, his entire holding in the company.
Oracle Chief Executive Naheed Memon said: "We are pleased to confirm this equity placing, as it will strengthen the company's balance sheet and provide working capital for project furtherance as we move forward with our Chinese partners."
Trading of the placed shares on AIM is expected to begin on August 14.
