/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE
SERVICES OR DISSEMINATION IN THE UNITED
STATES./
VANCOUVER, BC, March 1,
2022 /CNW/ - Reconnaissance Energy Africa Ltd.
(the "Company" or "ReconAfrica") (TSXV: RECO) (OTCQX: RECAF)
(Frankfurt: 0XD) is pleased to
announce that it has completed its previously announced bought deal
offering (the "Offering") of units (the "Units") for gross proceeds
of C$47,466,250, including the full
exercise of the over-allotment option in the amount of C$6,191,250. The Offering was completed by way of
a short form prospectus filed in all of the provinces of
Canada, except Québec, and the
Units were sold outside of Canada
on a private placement basis.
Pursuant to the Offering, a total of 7,475,000 Units were sold
at a price of C$6.35 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
(each, a "Warrant"). Each Warrant entitles the holder to acquire
one Common Share at a price of C$9.00
until October 31, 2022. In the event
that the moving volume weighted average trading price of the Common
Shares on the TSX Venture Exchange over any period of 20
consecutive trading days equals or exceeds C$14.00, the Company may, upon written notice to
the holders of the Warrants, accelerate the expiry date of the
Warrants to the date that is 30 calendar days following the date of
such notice.
The Offering was made through Canaccord Genuity Corp. (the
"Underwriter"). The Underwriter received a cash commission equal to
6.0% of the gross proceeds of the Offering (other than from the
sale of Units to purchasers on the president's list, for which a
3.0% cash commission was paid). In addition, the Underwriter was
issued 446,610 compensation options, equal to 6.0% 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) (the "Compensation Options").
Each Compensation Option entitles the holder to acquire one Unit at
a price of C$6.35 until October 31, 2022. As additional compensation, the
Underwriter was issued 19,685 Units as a corporate finance fee.
The net proceeds from the Offering will be used for drilling and
seismic operations in the Kavango sedimentary basin, as well as for
working capital and general corporate purposes as outlined in the
Company's final short form prospectus dated February 24, 2022.
The securities referred to in this news release have not
been, nor will they be, registered under the U.S. Securities Act of
1933 Act, as amended, and may not be offered or sold within
the United States absent U.S.
registration or an applicable exemption from the U.S. registration
requirements. This news release does not constitute an offer for
sale of securities, nor a solicitation for offers to buy any
securities in the United States,
nor in any other jurisdiction in which such offer, solicitation or
sale would be unlawful. Any public offering of securities in
the United States must be made by
means of a prospectus containing detailed information about the
company and management, as well as financial statements.
About ReconAfrica
ReconAfrica is a Canadian oil and gas company engaged in the
opening of the newly discovered Kavango Sedimentary Basin, in the
Kalahari Desert of northeastern Namibia and northwestern Botswana, where the Company holds petroleum
licences comprising approximately 8.5 million contiguous acres. In
all aspects of its operations, ReconAfrica is committed to minimal
disturbance of habitat, in line with best 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 news 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 any potential acceleration of the expiry
date of the Warrants, the use of proceeds, and the Company's
commitment to minimal disturbances in line with international best
standards and its implementation of environmental and social best
practices in all of its project areas. These statements relate to
future events or future performance. These statements relate to
future events or future performance. The use of any of the words
"could", "intend", "expect", "believe", "will", "projected",
"estimated" and similar expressions and statements relating to
matters that are not historical facts are intended to identify
forward-looking information and are based on ReconAfrica's current
belief or assumptions as to the outcome and timing of such future
events. There can be no assurance that such statements will prove
to be accurate, as the Company's actual results and future events
could differ materially from those anticipated in these
forward-looking statements as a result of the factors discussed in
the "Risk Factors" section in the Company's amended and restated
annual information form dated May 19,
2021, available under the Company's profile at
www.sedar.com. Actual future results may differ materially. Various
assumptions or factors are typically applied in drawing conclusions
or making the forecasts or projections set out in forward-looking
information. Those assumptions and factors are based on information
currently available to ReconAfrica. The forward-looking information
contained in this release is made as of the date hereof and
ReconAfrica undertakes no obligation to update or revise any
forward-looking information, whether as a result of new
information, future events or otherwise, except as required by
applicable securities laws. Because of the risks, uncertainties and
assumptions contained herein, investors should not place undue
reliance on forward-looking information. The foregoing statements
expressly qualify any forward-looking information contained
herein.
SOURCE Reconnaissance Energy Africa Ltd.