Oracle Power Regulatory News (ORCP)

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*

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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.