Oracle Power signs £1m loan agreement with Brandon Hill Capital

The AIM-traded firm said that under the Loan Agreement, Oracle would be 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 would be payable quarterly in arrears or, at the option of Oracle, in full when the drawn principal is repaid.

There were no options, warrants or convertible aspect to the loan and no fee was owed to Brandon Hill Capital for providing the funds.

The loan was unsecured, Oracle noted, adding that the principal and outstanding interest was repayable 12 months from the date of the loan agreement, or earlier at Oracle's option, without penalty.

“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,” said Oracle Power CEO Shahrukh Khan.

“With this facility in place, the company now has the flexibility to continue to progress its ongoing discussions with various parties with regards to the full funding of the 660MW Thar Project.

“Following its elevation to the priority list of the China-Pakistan Economic Corridor, the company has seen significant interest from potential financiers of both debt and equity.”