Warrant Acceleration May Result in Gross
Proceeds to The Company of Up to $33
Million, Including Previously Exercised Listed
Warrants
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR
FOR RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION DIRECTLY OR
INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES
VANCOUVER, BC, Feb. 10, 2021 /CNW/ - Reconnaissance Energy
Africa Ltd. (the "Company" or "ReconAfrica") (TSXV: RECO)
(OTCQX: RECAF) (Frankfurt: 0XD) announces it has elected to
accelerate the expiry date of the common share purchase warrants
issued on August 20, 2020 (the
"Warrants") under the warrant indenture between Computershare Trust
Company of Canada (the "Warrant
Agent") and the Company dated August 20,
2020 (the "Warrant Indenture").
"The exercise of these listed warrants significantly strengthens
the Company's balance sheet, providing a strong catalyst to
accelerate ReconAfrica's objectives in developing this newly
discovered deep Permian basin," said Scot
Evans, Chief Executive Officer.
Accelerated Expiry Date
As described in the Company's Short Form Prospectus dated
August 12, 2020, and pursuant to the
terms of the Warrant Indenture, if the volume weighted average
trading price of the Company's common shares on the TSX Venture
Exchange equals or exceeds $3.00 for
a period of 20 consecutive trading days (the "Acceleration
Trigger"), the Company is entitled to accelerate the expiry date of
the Warrants to the date that is 30 days following the date notice
of such acceleration (the "Acceleration Notice") is delivered to
holders of Warrants. The Company will deliver the Acceleration
Notice to holders of Warrants indicating the Company's election to
accelerate the expiry date of the Warrants to March 18, 2021 (the "Accelerated Expiry
Date").
Any Warrants that have not been exercised by 1:30 p.m. (Vancouver time) on March 18, 2021 will automatically be
cancelled.
Each Warrant entitles the holder to purchase one common share of
the Company at a price of $1.00. If
all Warrants are exercised, including previously exercised
Warrants, gross proceeds to the Company will total approximately
$32.9 million, however, there can be
no assurance that any additional Warrants will be exercised prior
to the Accelerated Expiry Date.
Warrant holders who wish to exercise their Warrants should
review the exercise requirements contained in the Acceleration
Notice, the Warrant Indenture and, if applicable, the certificate
evidencing their Warrants, and contact their legal and investment
advisors before submitting the exercise form and any other
applicable documentation to the Warrant Agent. The contact details
for the Warrant Agent are as follows: Computershare Trust Company
of Canada, 3rd Floor,
510 Burrard Street, Vancouver, British
Columbia V6C 3B9.
Email: corporatetrust.vancouver@computershare.com.
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.
This news release does not constitute an offer to sell or a
solicitation of an offer to sell any of the securities in
the United States. The securities
have not been and will not be registered under the United States
Securities Act of 1933, as amended (the "U.S. Securities Act") or
any state securities laws and may not be offered or sold within
the United States or to, or for
the account or benefit of, U.S. Persons unless registered under the
U.S. Securities Act and applicable state securities laws or an
exemption from such registration is available.
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.
Cautionary Note Regarding Forward-Looking
Statements: Certain statements contained in this press
release constitute forward-looking information under applicable
Canadian, United States and other
applicable securities laws, rules and regulations, including,
without limitation, statements with respect to the gross proceeds
expected to be received by the Company from the exercise of the
Warrants. These statements relate to future events or future
performance. The use of any of the words "could", "intend",
"expect", "believe", "will", "projected", "estimated" and similar
expressions and statements relating to matters that are not
historical facts are intended to identify forward-looking
information and are based on ReconAfrica's current belief or
assumptions as to the outcome and timing of such future events.
There can be no assurance that such statements will prove to be
accurate, as the Company's actual results and future events could
differ materially from those anticipated in these forward-looking
statements as a result of the factors discussed in the "Risk
Factors" section in the Company's annual information form dated
July 27, 2020 available under the
Company's profile at www.sedar.com. Actual future results may
differ materially. Various assumptions or factors are typically
applied in drawing conclusions or making the forecasts or
projections set out in forward-looking information. Those
assumptions and factors are based on information currently
available to ReconAfrica. The forward-looking information contained
in this release is made as of the date hereof and ReconAfrica
undertakes no obligation to update or revise any forward-looking
information, whether as a result of new information, future events
or otherwise, except as required by applicable securities laws.
Because of the risks, uncertainties and assumptions contained
herein, investors should not place undue reliance on
forward-looking information. The foregoing statements expressly
qualify any forward-looking information contained herein.
SOURCE Reconnaissance Energy Africa Ltd.