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Reconnaissance Energy Africa Ltd
Symbol RECO
Shares Issued 210,916,210
Close 2024-04-02 C$ 0.90
Market Cap C$ 189,824,589
Recent Sedar Documents

Reconnaissance Energy closes $17.25M public offering

2024-04-03 12:47 ET - News Release

Mr. Brian Reinsborough reports

RECONAFRICA ANNOUNCES CLOSING OF C$17.25 MILLION BOUGHT DEAL PUBLIC OFFERING, INCLUDING THE FULL EXERCISE OF THE OVER-ALLOTMENT OPTION

Reconnaissance Energy Africa Ltd. has completed its previously announced bought deal public offering of units of the company for aggregate gross proceeds of $17,250,035, including the full exercise of the overallotment option. Pursuant to the Offering, a total of 19,166,705 Units were sold at a price of C$0.90 per Unit. Each Unit consists of one common share in the capital of the Company (each, a "Common Share") and one common share purchase warrant of the Company (each, a "Warrant").

The Offering was completed pursuant to an underwriting agreement dated March 25, 2024 entered into between the Company and a syndicate of underwriters led by Research Capital Corporation as the lead underwriter and sole bookrunner (the "Lead Underwriter"), on behalf of a syndicate of underwriters, including Haywood Securities Inc. and Canaccord Genuity Corp. (together with the Lead Underwriter, the "Underwriters").

Each Warrant entitles the holder to acquire one Common Share at a price of C$1.15 until April 3, 2026. In the event that, at any time four months and one day after the date of issuance and prior to the expiry date of the Warrants, the moving volume weighted average trading price of the Common Shares on the TSX Venture Exchange ("TSXV"), or other principal exchange on which the Common Shares are listed, is equal to or greater than C$2.50 for any 20 consecutive trading days, the Company may, within 10 business days of the occurrence of such event, deliver a notice to the holders of Warrants accelerating the expiry date of the Warrants to the date that is 30 days following the date of such notice (the "Accelerated Exercise Period"). Any unexercised Warrants shall automatically expire at the end of the Accelerated Exercise Period.

The net proceeds from the Offering are expected to be used for drilling activities, long lead items for drilling, road and location construction, and working capital as outlined in the Company's prospectus supplement dated March 25, 2024.

The Offering was completed by way of a prospectus supplement to the Company's short form base shelf prospectus dated February 29, 2024 filed in all of the provinces of Canada, except Quebec, and the Units were sold outside of Canada on a private placement basis. Copies of the prospectus supplement and the base shelf prospectus are available under the Company's profile on SEDAR+ at www.sedarplus.ca.

The Underwriters received a cash commission equal to 7.0% of the gross proceeds of the Offering (other than from the sale of Units to purchasers on the president's list, for which a 3.5% cash commission was paid). In addition, the Underwriters were issued an aggregate of 1,263,878 compensation options (the "Compensation Options"), equal to 7.0% of the number of Units sold under the Offering (other than with respect to those sold to purchasers on the president's list, for which no Compensation Options were issued). Each Compensation Option entitles the holder to acquire one Common Share at a price of C$0.90 until April 3, 2026.

This press release is not an offer to sell or the solicitation of an offer to buy the securities in the United States or in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification or registration under the securities laws of such jurisdiction. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from U.S. registration requirements and applicable U.S. state securities laws. About ReconAfrica

ReconAfrica is a Canadian oil and gas company engaged in the opening of the newly discovered deep Kavango Sedimentary Basin in the Kalahari Desert of northeastern Namibia and northwestern Botswana, where the Company holds petroleum licenses comprising ~8 million contiguous acres. In all aspects of its operations ReconAfrica is committed to minimal disturbance of habitat in line with international standards and will implement environmental and social best practices in all of its project areas.

We seek Safe Harbor.

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