Africa Hydrocarbons Inc. has entered into an engagement agreement with Canaccord Genuity Corp. (the Agent) in connection with a public offering on a commercially reasonable efforts basis of up to 55,600,000 common shares (the Common Shares) of the Company, at a price of $0.18 per share, for aggregate gross proceeds of up to $10,008,000 (the Offering).

The Company has agreed to pay the Agent a fee of 7% of the aggregate gross proceeds of the Offering. In addition, the Agent will be issued on the closing of the Offering agent options (the Agent Options) entitling the Agent to subscribe for Common Shares equal to 7% of the aggregate number of Common Shares issued under the Offering at an exercise price of $0.18 per Common Share. The Agent Options will expire 18 months after closing of the Offering.

Tags: Africa Hydrocarbons Inc.