Equinox Gold Corp (EQX) shares are trading lower by 5.3% to $5.84 during Thursday’s session following the company’s announcement of a significant share issuance. The company has issued 24,761,905 common shares to Ninety Fourth Investment Company, an affiliate of MDC Industry Holding. This move stems from the conversion of a US$130 million convertible note held by Ninety Fourth.
These newly issued shares will now be sold in a secondary offering, led by BMO Capital Markets, at a price of US$5.65 per share. This transaction is projected to generate gross proceeds of approximately US$140 million for Ninety Fourth.
It’s important to note that Equinox Gold will not receive any proceeds from this sale. However, the conversion of the note significantly reduces the company’s debt and provides a boost to its liquidity.
MDC originally acquired the note in 2019 and will retain a second US$130 million convertible note with a maturity date in 2025. The offering is expected to close by October 9.
According to data from Benzinga Pro, EQX has a 52-week high of $6.50 and a 52-week low of $3.95.
