Why Fortuna Silver Mines (FSM) Stock Is Diving
Portfolio Pulse from Henry Khederian
Fortuna Silver Mines Inc (NYSE:FSM) shares dropped by 15% to $5.02 after announcing a $150 million convertible senior notes offering, with an option for an additional $22.5 million. The proceeds will be used to repay debt and fund general expenses. The interest and conversion rates will be market-dependent.
June 05, 2024 | 3:25 pm
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Fortuna Silver Mines Inc (NYSE:FSM) shares dropped by 15% to $5.02 after announcing a $150 million convertible senior notes offering, with an option for an additional $22.5 million. The proceeds will be used to repay debt and fund general expenses. The interest and conversion rates will be market-dependent.
The announcement of a significant convertible senior notes offering typically leads to a dilution of existing shares, causing a drop in stock price. The 15% decline reflects investor concerns about dilution and the company's need to manage debt.
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