ReconAfrica completes C$23 million public offering
On August 20, 2020, Reconnaissance Energy Africa Ltd. ("ReconAfrica") announced that it completed its previously announced public offering of units for gross proceeds of approximately C$23 million, including the partial exercise of the over-allotment option.
The offering was made through Haywood Securities Inc. and was completed by way of a short form prospectus filed in all of the provinces of Canada, except Québec, and the units were sold elsewhere outside of Canada on a private placement basis.
Pursuant to the offering, a total of 32,855,409 units were sold at a price of C$0.70 per unit, with each unit consisting of one common share in the capital of ReconAfrica and one common share purchase warrant. Each warrant entitles the holder to acquire one common share at a price of C$1.00 until August 20, 2025.
The net proceeds from the offering will be used for the transportation costs of shipping ReconAfrica's drilling rig from Houston, Texas to Namibia and to complete the three-well drilling program and acquire and process 2D seismic data in the Kavango Basin, together with working capital.
Further information can be found on ReconAfrica's website.
ReconAfrica is a junior oil and gas company engaged in the opening of the newly discovered deep Kavango Sedimentary Basin, in northeastern Namibia and northwestern Botswana, where ReconAfrica holds petroleum licences comprising approximately 8.75 million contiguous acres.