Business
Loan Agreement with Brandon Hill Capital Limited
Loan Agreement with Brandon Hill Capital Limited.
About this update from Oracle Power Plc
[{"type":"text","content":"\n \nRNS Number : 6580A Oracle Power PLC 30 May 2019 \n\n\n \n30 May 2019\nOracle Power PLC\n(\"Oracle\" or \"the Company\")\n \n£250,000 Loan Agreement with Brandon Hill Capital Limited\n \nOracle 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 (Thar Block VI), announces that is has entered into a loan agreement with Brandon Hill Capital Limited (\"Brandon Hill\") (the \"Loan Agreement\"), a substantial shareholder of Oracle, to provide the Company with a working capital facility of up to £250,000 (the \"Loan\").\n \nKey terms of the Loan Agreement\n \nPursuant to the terms of the Loan Agreement, £50,000 is immediately available for draw down by Oracle (the \"Initial Draw Down\"). Subsequent to the Initial Draw Down, the Company is able to draw down funds of up to £50,000 per month up to a maximum of £250,000. A coupon of 12% per annum (accruing daily) will be applied only to those funds drawn by the Company. There are no options, warrants or convertible aspects to the Loan and no fee is owed to Brandon Hill for providing the funds. The Loan is unsecured, with the principal and outstanding interest being repayable 12 months from the date of the Loan Agreement, or earlier, at Oracle's option, without penalty.\n \nSave for the Initial Draw Down, any subsequent draw down must be approved in advance by Brandon Hill with regard to the proposed use of proceeds for each such draw down. The proceeds from all draw downs will be applied to operational and general working capital purposes.\n \n \nNaheed Memon, CEO of Oracle Power, commented:\n \n\"We would like to thank Brandon Hill for their continued support of the Company as we look to finalise our transformational transaction with our Chinese partners. Significant progress has been made as per recent updates and we expect the funds under this Loan Agreement will be sufficient to reach Definitive Agreements with the Chinese Partners later this year.\n \nI look forward to providing further updates over the next few months.\"\n \n \nRelated Party Transaction\n \nThe Board of the Company notes that Brandon Hill, in aggregate with its parent company, Optima Worldwide Group plc, and certain of the group's dire...