ReconAfrica Announces C$35 Million Underwritten Offering

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 days

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CALGARY, 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. In the event that, at any time four months and one day after the date of issuance and prior to the expiry date of the Warrants, the moving volume weighted average trading price of the Common Shares on the TSX Venture Exchange (“Exchange”), or other principal exchange on which the Common Shares are listed, is equal to or greater than C$3.70 for any 20 consecutive trading days, the Company may, within 10 business days of the occurrence of such event, deliver a notice to the holders of Warrants accelerating the expiry date of the Warrants to the date that is 30 days following the date of such notice (the “Accelerated Exercise Period”). Any unexercised Warrants shall automatically expire at the end of the Accelerated Exercise Period.