Why Equinox Gold (EQX) Stock Is Falling

Equinox Gold Corp EQX shares are trading lower by 5.3% to $5.84 during Thursday’s session after the company announced it has issued 24,761,905 shares.

What To Know: Equinox Gold has issued 24.76 million common shares to Ninety Fourth Investment Company, an affiliate of MDC Industry Holding, following the conversion of a US$130 million convertible note.

These shares will now be sold in a secondary offering, led by BMO Capital Markets, at a price of US$5.65 per share, generating gross proceeds of approximately US$140 million for Ninety Fourth.

Equinox Gold says the company will not receive any proceeds from this sale, but the conversion reduces the company’s debt and boosts 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.

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According to data from Benzinga Pro, EQX has a 52-week high of $6.50 and a 52-week low of $3.95.