Reconnaissance Energy Africa, also known as ReconAfrica (TSXV: RECO) is looking to raise further funds. The oil and gas company this morning announced it will be conducting a bought deal financing via Canaccord Genuity Corp.
Under the terms of the financing, the firm will look to sell 6.0 million units at a price of $6.35 per unit, for gross proceeds of $38.1 million. Each unit is to consist of one common share and one purchase warrant, with warrants containing an exercise price of $9.00 and an expiry of just a few months, with warrants set to expire October 21, 2022.
Warrants also contain an acceleration clause, enabling the company to accelerate the expiry if the price of the equity goes beyond $14.00 for a period of 20 consecutive days. An over-allotment option for the financing is also in play, enabling the company to raise additional funds of up to $5.7 million.
Proceeds from the financing are to be used for both drilling and seismic operations at the firms Kavango property, as well as for working capital and general corporate purposes.
The financing is slated to close March 1, 2022.
ReconAfrica last traded at $6.69 on the TSX Venture.
Information for this briefing was found via Sedar and Reconnaissance Energy Africa Ltd. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
