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Investing.com -- Denison Mines Corp (NYSE:DNN) stock fell 7.9% after the uranium development company announced it had priced a $300 million offering of convertible senior unsecured notes due 2031.
The notes, which will bear cash interest semi-annually at a rate of 4.25% per annum, are convertible into Denison shares, cash, or a combination at the company’s election. The initial conversion rate represents a premium of approximately 35% relative to the closing share price on August 12, 2025.
Denison has granted the initial purchasers an option to buy up to an additional $45 million in notes within 13 days of the initial issuance. The offering is expected to close around August 15, 2025, subject to customary conditions including approvals from the Toronto Stock Exchange and NYSE American.
The company plans to use the proceeds to support evaluation and development of its uranium projects, including the Wheeler River Uranium Project, and for general corporate purposes. Additionally, approximately $30.75 million will fund capped call transactions designed to reduce potential dilution upon conversion of the notes.
In connection with the offering, Denison has entered into privately negotiated cash-settled capped call transactions with financial institutions. The cap price of these transactions is initially set at $4.32 per share, representing a 100% premium above the last reported sale price of $2.16 per share on August 12, 2025.
The notes and any shares issuable upon conversion will be subject to a statutory hold period in accordance with applicable securities legislation.
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