Oracle Power Regulatory News (ORCP)

 28 December 2017

Oracle Power PLC

("Oracle" or "the Company")

Equity Placing at 2.3p per Ordinary Share

Exercise of Warrants

Oracle Power PLC (AIM:ORCP), the UK energy developer of a combined lignite coal mine and mine mouth power plant located in the south-eastern Sindh Province of Pakistan, announces that it has issued a total of 27,023,652 ordinary shares of 0.1 pence each in the capital of the Company ("Ordinary Shares") at a price of 2.3 pence per share, representing an approximate premium of 20% to the closing mid-market price on 27 December 2017, pursuant to an equity fundraising. In addition, the Company also announces that Brandon Hill Capital Limited ("Brandon Hill"), the Company's broker, has exercised warrants held over 23,076,920 Ordinary Shares.

Equity placing and warrant exercise

The Company has raised £621,544 before costs by way of a placing of 27,023,652 new Ordinary Shares at a price of 2.3p per Ordinary Share to a new investor and the Company's joint broker, Brandon Hill, (the "Placing").

In addition, Brandon Hill has also exercised warrants held over 23,076,920 Ordinary Shares, at an exercise price of 0.65 pence per Ordinary Share (the "Exercise Price"), resulting in gross proceeds of £150,000 being receivable by the Company (the "Warrant Exercise"). The warrants were issued to Brandon Hill on 2 March 2015 at the Exercise Price, as remuneration for its role in a placing for the Company at that time. These warrants were due to expire in Q1 2018.

The proceeds of the Placing and the Warrant Exercise will provide Oracle with funds to repay the drawn principal and outstanding interest balance on the loan facility made available by Brandon Hill (announced on 25 September 2017) of £471,544, and will provide general working capital as the Company looks to move towards financial close on the basis of the Memorandum of Understanding with two major Chinese State Owned Enterprises, announced on 21 November 2017.

As part of the Placing, Brandon Hill has agreed to subscribe for 13,980,174 Ordinary Shares. Following the issue of the Ordinary Shares pursuant to the Placing and Warrant Exercise, Brandon Hill, together with its parent company, Optima Worldwide Group PLC, will hold 161,424,312 Ordinary Shares, representing 16.78 per cent of the enlarged issued share capital of the Company.

Related party transaction

Brandon Hill, in aggregate with its parent company, Optima Worldwide Group PLC, is a substantial shareholder of the Company. Accordingly, Brandon Hill's participation in the Placing constitutes a related party transaction pursuant to Rule 13 of the AIM Rules for Companies. The directors of the Company consider, having consulted with the Company's nominated adviser, Grant Thornton UK LLP, that the terms of this transaction are fair and reasonable insofar as its shareholders are concerned.

 Shahrukh Khan, CEO of Oracle, said:

 "We are pleased to announce the equity placing at a healthy premium to the current market share price, which will allow us to repay the outstanding loan balance to Brandon Hill and will strengthen the Company's balance sheet as we move into 2018 and ahead of targeting financial close."

Settlement and dealings

Application will be made for the 50,100,572 Ordinary Shares, issued pursuant to the Warrant Exercise and Placing, which will rank pari passu with the Company's existing issued Ordinary Shares, to be admitted to trading on AIM. Dealings on AIM are expected to commence at 8:00am on or around 5 January 2018 ("Admission").

Following Admission, for the purposes of the Financial Conduct Authority's Disclosure Guidance and Transparency Rules ("DTRs"), Oracle will have 961,883,698 Ordinary Shares in issue with voting rights attached (one vote per Ordinary Share). The Company does not hold any shares in treasury. This figure of 961,883,698 ordinary shares may be used by the Company's shareholders 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 DTRs.

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

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