Read this notice carefully as it may affect
your rights
TORONTO, June 29, 2024 /PRNewswire/ -- This Notice is
directed to all persons and entities, excluding certain persons
associated with the defendant, Reconnaissance Energy Africa Ltd.
("ReconAfrica") wherever they may reside or be domiciled, who
purchased or otherwise acquired common shares of ReconAfrica
listed on the TSX Venture Exchange and Frankfurt Stock Exchange, on
or after May 30, 2020 (the
"ReconAfrica Securities"), and held some or all of those securities
until after the close of trading on September 7, 2021 ("Canadian Settlement Class
Members" and the "Canadian Class Period").
PURPOSE OF THIS NOTICE
A proposed class action (the
"Canadian Action") brought on behalf of the Canadian Settlement
Class Members has been settled. The Canadian Settlement has been
approved by the British Columbia Supreme Court (the "Canadian
Court"). This Notice provides Canadian Settlement Class Members
with information about how to submit a Claim Form to the Canadian
Claims Administrator in order to participate in the distribution of
the Canadian Net Settlement Fund.
THE ACTION
The plaintiff in the Canadian Action (the
"Canadian Plaintiff") alleges that commencing May 2020, ReconAfrica negligently signaled
planned fracking by referencing "unconventional" resources and
"shale" deposits within Namibia.
In industry parlance, "unconventional" resources and/or "shale"
deposits refer to oil and gas deposits requiring extraction
by fracking. The Canadian Plaintiff alleges that ReconAfrica
was made these statements negligently because it failed to disclose
to investors that: (1) ReconAfrica had not determined whether
Namibia would allow fracking,
which had never been done in Namibia, and which was central to
ReconAfrica's business plans; and (2) ReconAfrica possessed data
from its test wells that revealed poor prospects for achieving oil
and gas production that would be commercially viable. These alleged
omitted material facts undermined ReconAfrica's public statements
made during the Canadian Class Period, rendering them misleading.
When publicly corrected, the markets' reaction was allegedly
immediate and harsh.
ReconAfrica denies all such allegations.
The settlement of the Canadian Action, without an admission of
liability on the part of ReconAfrica, was approved by The
Honourable Justice Francis on June 20,
2024. This notice provides a summary of the settlement.
SUMMARY OF THE SETTLEMENT TERMS
ReconAfrica will pay
CAD $5,075,000 million (the "Canadian
Settlement Amount"), in full and final settlement of all claims
against it in the Canadian Action. Canadian Class Counsel Fees,
including out-of-pocket expenses and taxes, were fixed by the Court
as a first charge on the Canadian Settlement Amount in the amount
of thirty (30) percent of CAD $5,075,000
million, plus disbursements, plus taxes. The Canadian
Settlement Amount for the Class, less the Canadian Class Counsel
Fees and disbursements, administrator's expenses, and taxes, (the
"Canadian Net Settlement Amount") will be distributed to the
Canadian Settlement Class in accordance with the Court-approved
Canadian Plan of Allocation. The Global Stipulation and Agreement
of Settlement dated February 27, 2024
(the "Settlement Agreement") and Canadian Plan of Allocation
may be viewed at
https://bergermontague.ca/cases/reconnaissance-energy-africa-ltd/.
HOW TO MAKE A CLAIM FOR COMPENSATION:
CLAIMS FOR COMPENSATION MUST BE RECEIVED BY
OCTOBER 28, 2024
Each Canadian Settlement Class Member must submit a completed
Claim Form on or before October 28,
2024 in order to participate in the settlement. The
Claim Form can be accessed or downloaded at
https://bergermontague.ca/cases/reconnaissance-energy-africa-ltd/
or obtained by calling the Canadian Claims Administrator at
647.598.8772 extension 6. If you do not submit a completed Claim
Form by October 28, 2024 2024,
you will not receive any part of the Canadian Net Settlement
Amount.
The Canadian Court appointed Berger
Montague (Canada) PC as the Administrator of the settlement
to, among other things: (i) receive and process Claim Forms; (ii)
decide eligibility for compensation; and (iii) distribute the
net Canadian Settlement Amount to eligible Class Members. The Claim
Form should be submitted to the Administrator by using the secure
Online Claims System at
https://bergermontague.ca/cases/reconnaissance-energy-africa-ltd/.
You may submit a paper Claim Form only if you do not have internet
access. The paper Claim Form may be sent by mail or courier to:
ReconAfrica Claims Administrator
330 Bay Street, Suite 505
Toronto, ON M5H 2S8
Email: info@bergermontague.ca
INTERPRETATION
If there is a conflict between the
provisions of this Notice and the Settlement Agreement, the terms
of the Settlement Agreement will prevail.
This notice has been approved by the
Court. Questions about matters
This notice should
NOT be directed to the Canadian Court.
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