VANCOUVER — Shares of Equinox Gold Corp. fell nearly 20 per cent in early trading Tuesday after the company announced a deal to raise US$150 million in an offering of convertible debt.
Equinox, which has mines in Brazil, Mexico and the United States, says it plans to use the money raised from the offering to repay other debt and for general corporate purposes.
After the close of trading Monday, Equinox said it has signed a deal to issue US$150 million in 4.75 per cent unsecured convertible senior notes due 2028.
The initial conversion rate for the notes will be about 159 common shares of Equinox Gold per US$1,000 principal, equivalent to an initial conversion price of about US$6.30 per share.
The company said it has also granted the initial purchasers of the notes an option for a period of 30 days for up to an additional US$22.5 million in notes.
Equinox shares were down C$1.29 or about 18 per cent at C$5.82 in trading Tuesday on the Toronto Stock Exchange.
This report by The Canadian Press was first published Sept. 19, 2023.
Companies in this story: (TSX:EQX)
The Canadian Press