ReconAfrica Announces Closing of C$20.4 Million Underwritten Offering

Core Viewpoint - Reconnaissance Energy Africa Ltd. has successfully completed an upsized underwritten public offering, raising gross proceeds of C$20,373,740 at a price of C$0.60 per unit, which includes the exercise of the over-allotment option [1][2] Offering Details - The offering was led by Research Capital Corporation as the lead underwriter, with participation from Canaccord Genuity Corp. and Haywood Securities Inc. [2] - Each unit consists of one common share and one warrant, with the warrant allowing the purchase of one common share at C$0.72 until September 29, 2027 [3] - The net proceeds will be allocated to appraisal and exploration activities in Gabon, maintenance costs in Namibia, commitments in Angola, and general working capital [4] Management Commentary - The President and CEO expressed satisfaction with the successful closing of the offering, emphasizing its role in advancing the drilling program in Namibia and the new business plan for the Ngulu block in Gabon [5] Additional Offering Information - The offering was conducted via a prospectus supplement to the Company's base shelf prospectus, with units sold outside Canada on a private placement basis [6] - Certain insiders participated in the offering, acquiring a total of 18,400 units, which is classified as a related party transaction [7] Underwriters' Compensation - The underwriters received a cash commission of 6.0% of the gross proceeds, totaling C$1,088,428.80, along with broker warrants and an advisory fee [8] Financial Advisory Engagement - Research Capital Corporation was compensated C$120,000 and issued 166,667 units for advisory services related to the Gabon transaction and the offering [10] Corporate Developments - Mark Friesen has been appointed as Vice President of Investor Relations & Capital Markets, effective October 1, 2025, and the company granted stock options to acquire 625,000 common shares [11] Company Overview - ReconAfrica is engaged in oil and gas exploration in Namibia, Angola, and Botswana, holding petroleum licenses over approximately 13 million acres, and operates the Ngulu block offshore Gabon [12]