21st Feb 2019 15:07
LONDON (Alliance News) - Oracle Power PLC on Thursday said it has raised GBP500,000 before costs through a share placing to allow pre-development project work with its Chinese partners.
The UK energy developer issued 117.7 million shares at a price of 0.43 pence each. The placing price is equal to the mid-market closing price of the company's shares on Wednesday.
Oracle Power shares were trading 18% higher on Thursday at 0.50p each.
In addition, Oracle Power said the investors have been issued with one warrant for each placing share subscribed for. Each warrant is exercisable at a price of 0.85 pence, representing a premium of 100% to the placing price, for a period of 24 months from the date of admission of shares.
Oracle Power said the placing will provide it with short-term working capital and allow pre-development project work with its Chinese partners, Beijing Jingneng Power Co Ltd and PowerChina International Group Ltd.
"We are pleased to confirm this equity placing, which was conducted at market price, as it will strengthen the company's balance sheet and provide working capital as we move forward with our Chinese partners," said Oracle Power Chief Executive Naheed Memon.
"The block VI development in Thar is of material significance not only to Oracle but also to Pakistan in general," continued Memon. "The initial phase of development carries a capital cost of USD1.6 billion and is for a gross 4 million tonnes per annum mine, feeding a 700 megawatts power plant."
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