Reconnaissance Energy Africa Ltd (RECAF)

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ReconAfrica Announces C$25 Million Bought Deal Financing
May 05 2021 - 04:17PM
GlobeNewswire Inc.

Reconnaissance Energy Africa Ltd. (the “Company” or “ReconAfrica”) (TSX-V: RECO) (OTCQX: RECAF) (Frankfurt: 0XD) is pleased to announce that it has entered into an agreement with Haywood Securities Inc., as underwriter (the “Underwriter”), pursuant to which the Underwriter has agreed to buy, on a bought deal basis, 2,632,000 units (the “Units”) at a price of C$9.50 per
Unit for gross proceeds of C$25,004,000 (the “Offering”).

Each Unit will consist of one common share (a “Common Share”) in the capital of the Company and one-half of one common share purchase warrant (each whole common share purchase warrant, a “Warrant”). Each Warrant will entitle the holder to acquire one Common Share at a price of C$14.00 for a period of three years from the closing of the Offering. The Warrants will be subject to acceleration of the expiry date to a date 30 calendar days following notice to be provided to the holders of the Warrants by the Company in the event that the moving daily volume weighted average trading price of the Common Shares on the TSX Venture Exchange (the “Exchange”) over any period of 20 consecutive trading days equals or exceeds C$20.00.

The Company has granted the Underwriter an option, exercisable at the offering price to be completed concurrently with the Offering, to purchase up to an additional 15% of the number of Units issued pursuant to the Offering to cover over-allotments, if any.

The net proceeds from the Offering will be used for seismic and drilling operations, as well as for working capital and general corporate purposes.

Closing of the Offering is expected to occur on or about May 26, 2021, and is subject to the Company receiving all necessary regulatory approvals, including, but not limited to, the acceptance of the Exchange and the approval of applicable securities regulatory authorities.

The Units will be offered by way of a short form prospectus in each of the provinces of Canada, excluding Quebec, and the Units may also be offered by way of private placement in the United States.

https://reconafrica.com/wp-content/uploads/ReconAfrica-Press-Release-050521-2.pdf


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