ReconAfrica Announces C$35 Million Underwritten Offering
Summary
The prospectus supplement, the corresponding base shelf prospectus and any amendment thereto in connection with this offering will be accessible through SEDAR+ within two business daysNOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATESCALGARY, Alberta, July 17, 2024 (GLOBE NEWSWIRE) -- Reconnaissance Energy Africa Ltd. (the Company or ReconAfrica) (TSXV: RECO) (OTCQX: RECAF) (Frankfurt: 0XD) announces that, in connection with its previously announced overnight marketed public offering (the Offering) of units of the Company (the Units), it has entered into an underwriting agreement with Research Capital Corporation as the lead underwriter and sole bookrunner, on behalf of a syndicate of underwriters, including Canaccord Genuity Corp. and Haywood Securities Inc. (collectively, the Underwriters), pursuant to which the Underwriters will agree to purchase 28,000,000 Units for aggregate gross proceeds of C$35 million.BW Energy Limited (BW Energy) has agreed to a strategic equity investment in the Company for US$16 million (approximately C$22 million), pursuant to the Offering in connection with the strategic partnership with the Company.Each Unit will be comprised of one common share of the Company (a Common Share), and one Common Share purchase warrant of the Company (a Warrant). Each Warrant will entitle the holder thereof to purchase one Common Share at an exercise price of C$1.75 at any time up to 24 months from closing of the Offering, subject to an acceleration provision as detailed further below. Any unexercised Warrants shall automatically expire at the end of the Accelerated Exercise Period.The net proceeds from the Offering will be used for exploration activities, working capital and general corporate purposes.The Company has granted to the Underwriters an option (the Over-Allotment Option), exercisable, in whole or in part, in the sole discretion of the Underwriters, to purchase up to an additional number of Units, and/or the components thereof, that in aggregate would be equal to 15% of the total number of Units to be issued under the Offering, to cover over-allotments, if any, and for market stabilization purposes, exercisable at any time and from time to time up to 30 days following the closing of the Offering.All Units purchased by BW Energy will be subject to a six-month lock-up agreement.The closing of the Offering is expected to occur on or about July 31, 2024 (the Closing), or such other earlier or later date as the Underwriters may determine. 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.Neither the TSXV nor its Regulation Services Provider (as that term is defined in policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.Cautionary Note Regarding Forward-Looking Statements:Certain statements contained in this press release constitute forward-looking information under applicable Canadian, United States and other applicable securities laws, rules and regulations, including, without limitation, statements with respect to the completion of the strategic joint venture transaction, the timing and amount of cash payments relating to the joint venture transaction, the timing and amount of any bonus payments, the timing and amount of production milestone payments, entering into a definitive agreement, the drilling of four exploration wells, the undertaking of additional seismic acquisition, statements with respect to prospective resources of oil and natural gas, the financing of exploration, development and production related costs, the expected use of proceeds from the Offering, the expected closing date of the Offering, the completion of the Offering being subject to the receipt of all necessary regulatory approvals, including acceptance of the TSXV, any potential acceleration of the expiry date of the Warrants, the listing of the Warrants, and the Companys commitment to minimal disturbance of habitat, in line with best international standards and its implementation of environmental and social best practices in all of its project areas. The foregoing statements expressly qualify any forward-looking information contained herein.The report of Netherland, Sewell & Associates, Inc. (NSAI) entitled Estimates of Prospective Resources to the Reconnaissance Energy Africa Ltd.