On May 27, 2021, Reconnaissance Energy Africa Ltd. (“ReconAfrica”) closed a bought deal offering of 4,358,040 units at a price of $9.50 per unit for gross proceeds of approximately $41.4 million, which includes the full exercise of the underwriter’s over-allotment option. 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 in the United States on a private placement basis.
Each unit consists of one common share of ReconAfrica and one-half of one common share purchase warrant. Each warrant entitles the holder to acquire one ReconAfrica common share at a price of $14.00 until May 27, 2024, subject to acceleration 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 $20.00.
Cassels acted for ReconAfrica.