Reconnaissance Energy (Africa) Ltd V.RECO

Financing

[curious14]

ReconAfrica Announces C$25 Million Bought Deal Financing

Not for distribution to U.S. news wire services or dissemination in the United States.

VANCOUVER, British Columbia, May 05, 2021 (GLOBE NEWSWIRE) -- 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.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

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.

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.

For further information contact:

Scot Evans CEO | Tel: [phone]
Grayson Andersen Manager, IR | Tel: [phone]

Email: [e-mail]
IR Inquiries: [e-mail]

[InvrsContrarian]

And on may 27th we will get hole #2 info! Finally some good timelines.