AGM 2020 Q&A

17 July 2020

Oracle Power PLC

("Oracle", the "Company" or the "Group")

AGM 2020 Q&A

Oracle Power PLC (AIM:ORCP) is pleased to provide a written summary of certain questions received from shareholders ahead of its Annual General Meeting, held yesterday. The summary will also be available on the Company's website at www.oraclepower.co.uk 

1. Question: You have recently agreed a financing facility with investors arranged by Riverfort Global Capital Ltd. What is the facility available and what are the terms on which you can draw down the £45 million?

Answer: The Board wanted reliable access to additional capital over the long term and sought out a funding partner who could work with us over the next stage of Oracle's growth.  We found Riverfort Global Capital Ltd's ('Riverfort') terms acceptable and we proceeded to enter into a financing arrangement with investors arranged by Riverfort. The Company received an upfront £1,500,000 subscription by way of a prepayment for new ordinary shares in Oracle and have an agreed placing subscription facility ('PSF') of up to £45,000,000. The PSF remains available to us for five years, subject to various conditions, and when required we can send in an advance notice for a placement, at a price set in accordance with an agreed upon methodology. The PSF gives the Company the flexibility as current commercial activities at Thar Block VI continue and provides access to scalable capital to support project development. In addition, the Directors believe that the availability of the PSF should put Oracle in strong negotiating positions with potential additional opportunities to develop power and natural resource projects. Please refer to the Company's announcement of 9 July 2020 for further information on the financing facility.

2. Question: Why did you not go to the market to raise equity?

Answer: The Directors considered all funding options available to them, which included using the equity markets to raise capital. It was decided that the facility available from Riverfort arranged on behalf of their investors, on the scale presented with the access of a £45 million facility for future use, was in the best interests of the company and shareholders as a whole. The terms of the financing facility were also considered by the Board to be competitive and flexible.

3. Question: How much cash do you have in the bank?

Answer: The Company has a healthy cash position having increased recently as a result of the £1,500,000 subscription arranged by Riverfort and recent exercises of warrants - including by supportive shareholder: the private office of His Highness Sheikh Ahmed Bin Dalmook Juma Al Maktoum. The Company is funded for working capital costs until January 2022.

4. Question: You comment that the financing facility should put Oracle in strong negotiating positions with potential additional opportunities to develop power and natural resource projects. Are there any potential projects in the pipeline?

Answer: Oracle's overarching strategy is to become an international power and natural resource project developer focussed on delivering reliable and affordable power. 

Our priority focus is on the Thar Block VI Project in Pakistan and we are committed to achieving project milestones in as short a timeframe as practicable.

The Board remains aware of additional potential compelling opportunities in power and energy through which to advance Oracle's broader strategy. We regularly evaluate additional interesting projects, and although at present nothing has satisfied our investment criteria, we are committed to building further shareholder value, which may involve bringing other projects alongside current projects.

5. Question: You recently received the pro rata contribution payments for the shares of the private office of His Highness Sheikh Ahmed Bin Dalmook Juma Al Maktoum and China National Coal Development Company's costs of the Evaluation Fee payable to Private Power and Infrastructure Board as part of the application process for a Letter of Intent ("LOI"). What is the status of the LOI application?

Answer: We remain in regular dialogue with PPIB and have been awarded priority status within the China-Pakistan Economic Corridor.  We expect to hear further updates from PPIB shortly however the LOI approval is a process which the Board does not ultimately control and therefore any guidance on timelines would be based on information that has been provided to us.

The Board appreciates this is most frustrating for our shareholders, and rest assured the Company has a regulatory responsibility to keep shareholders informed of any material changes affecting the progress and development of the Company.   

ENDS

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