Why Equinox Gold (EQX) Stock Is Falling
Portfolio Pulse from Henry Khederian
Equinox Gold (EQX) shares fell 5.3% after announcing a secondary offering of 24.76 million shares following the conversion of a $130 million convertible note. The company will not receive proceeds, but the conversion reduces debt and boosts liquidity.
October 03, 2024 | 3:13 pm
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Equinox Gold's stock fell 5.3% after announcing a secondary offering of 24.76 million shares. The company will not receive proceeds, but the conversion reduces debt and boosts liquidity.
The issuance of new shares typically dilutes existing shareholders, leading to a drop in stock price. Although the conversion reduces debt and boosts liquidity, the immediate impact is negative due to dilution and the company not receiving proceeds.
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