Reconnaissance Energy Africa Ltd (TSX-V:RECO, OTCQX:RECAF) has increased the size of its previously announced public offering from C$10 million to C$18 million, citing strong investor demand.
The offering is led by Research Capital Corporation as the sole bookrunner, with Canaccord Genuity and Haywood Securities participating as underwriters.
Under the terms of the upsized offering, the underwriters have agreed to purchase 30 million units at C$0.60 per unit, generating gross proceeds of C$18 million.
Each unit consists of one common share and one warrant, which allows holders to purchase an additional common share at C$0.72 per share within 24 months.
ReconAfrica intends to seek approval to list the warrants on the TSX Venture Exchange.
The company confirmed that its strategic partner, BW Energy Limited, will participate alongside other investors in the offering.
Proceeds from the offering will be used to advance appraisal and exploration activities under the Ngulu Production Sharing Contract (PSC) in offshore Gabon.
Planned initiatives include geological and geophysical studies, reprocessing of 3D seismic data, and advancing the initial development well at the Loba Complex, as well as supporting general corporate purposes and working capital.