News
September 24, 2025
ReconAfrica Announces Filing of Prospectus Supplement for Upsized Underwritten Offering of C$18 Million
**NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES** The Base Shelf Prospectus and the Prospectus Supplement are accessible on SEDAR+ CALGARY, Alberta, Sept. 23, 2025 (GLOBE NEWSWIRE) — Reconnaissance Energy Africa Ltd. (the “Company” or “ReconAfrica” or “Recon”) (TSXV: RECO) (OTCQX: RECAF) (Frankfurt: 0XD) (NSX: REC) is [...]
Reconnaissance Energy Africa Ltd., an oil and gas company with operations focused in Namibia, has announced the filing of a prospectus supplement related to an upsized underwritten offering, aiming to raise C$18 million. The company, traded on the TSXV (RECO), OTCQX (RECAF), Frankfurt (0XD), and NSX (REC) exchanges, made the announcement from its Calgary, Alberta headquarters on September 23, 2025.
The filing of the prospectus supplement signifies a significant step for ReconAfrica in its capital-raising efforts. This move will allow the company to strengthen its financial position and potentially accelerate its exploration and development activities in its key operational area. While the company did not specify the exact use of funds in the initial announcement, it is generally understood that proceeds from such offerings are used for various purposes, including funding ongoing drilling programs, conducting further geological and geophysical studies, covering operational expenses, and potentially reducing debt.
The "upsized" nature of the offering suggests that ReconAfrica initially planned to raise a smaller amount, but increased investor interest led to the expansion of the offering to C$18 million. This could be a positive sign for the company, indicating confidence in its prospects from the investment community. The offering is underwritten, meaning that a syndicate of investment banks has agreed to purchase the securities from ReconAfrica and then resell them to investors. This provides a level of assurance that the offering will be successfully completed.
It is important to note that the announcement explicitly states that the offering is "NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES." This restriction likely stems from regulatory considerations and the company's decision to structure the offering in a way that complies with securities laws outside of the United States.
Interested parties are encouraged to review the Base Shelf Prospectus and the Prospectus Supplement, which contain detailed information about the offering, including the terms, conditions, and risks associated with investing in ReconAfrica's securities. These documents are readily available on SEDAR+, the System for Electronic Document Analysis and Retrieval, a Canadian regulatory filing system. Potential investors should carefully read these documents before making any investment decisions. This offering represents a crucial opportunity for ReconAfrica to secure funding and advance its exploration and development projects.
The filing of the prospectus supplement signifies a significant step for ReconAfrica in its capital-raising efforts. This move will allow the company to strengthen its financial position and potentially accelerate its exploration and development activities in its key operational area. While the company did not specify the exact use of funds in the initial announcement, it is generally understood that proceeds from such offerings are used for various purposes, including funding ongoing drilling programs, conducting further geological and geophysical studies, covering operational expenses, and potentially reducing debt.
The "upsized" nature of the offering suggests that ReconAfrica initially planned to raise a smaller amount, but increased investor interest led to the expansion of the offering to C$18 million. This could be a positive sign for the company, indicating confidence in its prospects from the investment community. The offering is underwritten, meaning that a syndicate of investment banks has agreed to purchase the securities from ReconAfrica and then resell them to investors. This provides a level of assurance that the offering will be successfully completed.
It is important to note that the announcement explicitly states that the offering is "NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES." This restriction likely stems from regulatory considerations and the company's decision to structure the offering in a way that complies with securities laws outside of the United States.
Interested parties are encouraged to review the Base Shelf Prospectus and the Prospectus Supplement, which contain detailed information about the offering, including the terms, conditions, and risks associated with investing in ReconAfrica's securities. These documents are readily available on SEDAR+, the System for Electronic Document Analysis and Retrieval, a Canadian regulatory filing system. Potential investors should carefully read these documents before making any investment decisions. This offering represents a crucial opportunity for ReconAfrica to secure funding and advance its exploration and development projects.
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