Reconnaissance Energy Africa Ltd (OTCMKTS:RECAF) fell 13% last week after announcing that it will retain John Dalton to offer investor relations services to the company under a consulting agreement. Dalton has more than 20 years of industry experience in the oil and gas sectors and currently is McDonald Dalton Capital partners LLC managing partner and Zeteky Inc., chairman.
In his role at ReconAfrica, Dalton will be in charge of offering research on the identification of possible partners with an emphasis in the US. Equally, he will initiate and execute investor meetings and develop corporate presentations, including other ad hoc projects the company might request.
This agreement will be for an initial six months term, and after that, the parties can re-evaluate an extension of the agreement unless they terminate it under the terms. In addition, as per the agreement, the company has given Dalton an option to acquire a total of 100,000 shares of its common stock at $6.23 per share for five years up to September 8, 2026. So, in weeks to come, RECAF is worth watching.
Market Reaction:
On Friday, RECAF stock gained 3.77% at $4.96 with more than 598k shares, compared to its average volume of 1.02 million shares. The stock has moved within a range of $4.8000 – 5.0000 after opening the trade at $5.
