Warrant Acceleration May Result in Gross Proceeds to The Company of Up to $33 Million, Including Previously Exercised Listed Warrants
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VANCOUVER, BC, Feb. 10, 2021 /CNW/ - Reconnaissance Energy Africa Ltd. (the "Company" or "ReconAfrica") (TSXV: RECO) (OTCQX: RECAF) (Frankfurt: 0XD) announces it has elected to accelerate the expiry date of the common share purchase warrants issued on August 20, 2020 (the "Warrants") under the warrant indenture between Computershare Trust Company of Canada (the "Warrant Agent") and the Company dated August 20, 2020 (the "Warrant Indenture").
"The exercise of these listed warrants significantly strengthens the Company's balance sheet, providing a strong catalyst to accelerate ReconAfrica's objectives in developing this newly discovered deep Permian basin," said Scot Evans, Chief Executive Officer.
Accelerated Expiry Date
As described in the Company's Short Form Prospectus dated August 12, 2020, and pursuant to the terms of the Warrant Indenture, if the volume weighted average trading price of the Company's common shares on the TSX Venture Exchange equals or exceeds $3.00 for a period of 20 consecutive trading days (the "Acceleration Trigger"), the Company is entitled to accelerate the expiry date of the Warrants to the date that is 30 days following the date notice of such acceleration (the "Acceleration Notice") is delivered to holders of Warrants. The Company will deliver the Acceleration Notice to holders of Warrants indicating the Company's election to accelerate the expiry date of the Warrants to March 18, 2021 (the "Accelerated Expiry Date").
Any Warrants that have not been exercised by 1:30 p.m. (Vancouver time) on March 18, 2021 will automatically be cancelled.
Each Warrant entitles the holder to purchase one common share of the Company at a price of $1.00. If all Warrants are exercised, including previously exercised Warrants, gross proceeds to the Company will total approximately $32.9 million, however, there can be no assurance that any additional Warrants will be exercised prior to the Accelerated Expiry Date.
Warrant holders who wish to exercise their Warrants should review the exercise requirements contained in the Acceleration Notice, the Warrant Indenture and, if applicable, the certificate evidencing their Warrants, and contact their legal and investment advisors before submitting the exercise form and any other applicable documentation to the Warrant Agent. The contact details for the Warrant Agent are as follows: Computershare Trust Company of Canada, 3rd Floor, 510 Burrard Street, Vancouver, British Columbia V6C 3B9.
Email: corporatetrust.vancouver@computershare.com.
ReconAfrica is a junior, 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 approximately 8.5 million contiguous acres. In all aspects of its operations, ReconAfrica is committed to minimal disturbances in line with international best standards and will implement environmental and social best practices in all of its project areas.