BOUGHT DEAL: Reconnaissance Energy Africa Ltd. (RECO) – C$38MM - C$6.35 per Unit – CG 100%
ReconAfrica is a 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 licences comprising approximately 8.5 million contiguous acres. In all aspects of its operations, ReconAfrica is committed to minimal disturbance of habitat, in line with best international standards, and will implement environmental and social best practices in all of its project areas. For more information, visit
www.sedar.com
.
THIS IS A SHORT FORM PROSPECTUS ISSUE. NO QUEBEC SALES.
Order books may close without further notice.
Issuer: Reconnaissance Energy Africa Ltd. (RECO).
Issue: C$38,100,000 (6,900,000 Units), prior to over-allotment option.
Issue Price: C$6.35 per Unit. Each Unit shall consist of one (1) Common Share and one (1) Common Share purchase warrant (C$9.00. October 30, 2022).
Reference Price: C$6.69 per Common Share.
All-In Discount (See Below For Warrant Valuation): C$0.0957 / 6.5%.
Closing Date: March 1, 2022.
Use of Proceeds:
The Company intends to use the net proceeds of the Offering for drilling and seismic operations in the Kavango sedimentary basin and for general corporate purposes.
Warrant Valuation*:
Reconnaissance Energy Africa Ltd. (TSXV: RECO)
Black-Scholes Warrant Value
Warrant value
Unit Offering Price:
C$
$6.350
K
%
41.7%
Exercise Price:
C$
$9.00
Time to maturity (in years):
yrs
0.8
Annualized volatility:
%
30.0%
Annual risk-free interest rate:
%
0.69%
d1
number
(1.1451)
d2
number
(1.4134)
Black-Scholes value (basic)
C$
$0.0957
# warrants per unit
1.00
Warrant value per unit
C$
$0.0957
Issue discount
Market close price:
C$
$6.690
Unit Offering Price:
C$
$6.350
Warrant value:
C$
($0.096)
Implied share issue price:
C$
$6.254
All-in discount:
C$
$0.436
All-in discount:
%
(6.5%)
*Calculations are my own
Syndicate:
Canaccord Genuity Corp. - 100.0%