Business
Loan Agreement
Loan Agreement.
About this update from Oracle Power Plc
[{"type":"text","content":"\n \nRNS Number : 6368R Oracle Power PLC 25 September 2017 \n\n25 September 2017\n \n \n Oracle Power PLC\n(\"Oracle\" or the \"Company\")\n \n£1m Loan Agreement with Substantial Shareholder Brandon Hill Capital Limited\n \nOracle Power PLC (AIM: ORCP), the UK energy developer of a combined lignite mineral resource and mine mouth power plant located in the Thar desert in the south-east of Sindh Province, Pakistan, is pleased to announce that it has entered into a loan agreement (the \"Loan Agreement\"), to provide the Company with a working capital loan facility of up to £1,000,000, with its substantial shareholder Brandon Hill Capital Limited (the \"Loan\").\nUnder the Loan Agreement, Oracle is able to draw down funds of up to £100,000 per month. A coupon of 12% per annum (accruing daily) will be applied only to those funds drawn by the Company and will be payable quarterly in arrears or, at the option of Oracle, in full when the drawn principal is repaid. There are no options, warrants or convertible aspect to the Loan and no fee is owed to Brandon Hill Capital Limited for providing the funds. The Loan is unsecured. The Loan principal and outstanding interest is repayable 12 months from the date of the Loan Agreement, or earlier, at Oracle's option, without penalty.\nThe Board of the Company notes that Brandon Hill Capital Limited, in aggregate with its parent company, Optima Worldwide Group PLC, is interested in 13.64 per cent of the total voting rights of the Company and is therefore a substantial shareholder of the Company. Accordingly, the Loan Agreement 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.\n \nShahrukh Khan, CEO, commented:\n\"We would like to thank Brandon Hill Capital Limited for its continued support. In the current climate we believe the terms of the Loan are attractive, provides the Company with non-dilutive capital and reaffirms the potential offered by the Company and its flagship Thar Coal Project in Pakistan.\nWith this facility in place, the Company now has the flexibility to continue to progress its o...