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Investing.com -- Vizsla Silver Corp. (NYSE:VZLA) stock fell 13% Thursday after the company priced a $250 million offering of convertible senior unsecured notes.
Shares traded at $4.05 in pre-market activity, down from Wednesday’s closing price of $4.67. The 5.00% convertible notes, due in 2031, will be initially convertible at approximately $5.84 per share, representing a 25% premium to Wednesday’s closing price.
The Vancouver-based mining company said it expects to receive approximately $239.4 million in net proceeds from the offering, which could increase to $285.9 million if initial purchasers exercise their option to buy an additional $50 million in notes.
Vizsla plans to use the proceeds to support exploration and development of its Panuco Project, potential future acquisitions, and general corporate purposes. The company will also allocate about $39.6 million to purchase cash-settled capped call transactions, which are designed to offset potential economic dilution upon conversion of the notes.
The notes will be convertible into shares, cash, or a combination at the company’s election. The initial conversion rate is 171.3062 common shares per $1,000 principal amount of notes.
In connection with the offering, Vizsla has entered into privately negotiated cash-settled capped call transactions with financial institutions. The cap price of these transactions is initially $10.5075 per share, representing a 125% premium to Wednesday’s closing price.
The offering is expected to close around November 24, 2025, subject to customary closing conditions including approval from the Toronto Stock Exchange and NYSE American.
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