Equinox Gold Announces Convertible Note Conversion and Bought Deal Secondary Offering
Equinox Gold Corp. (TSX: EQX, NYSE American: EQX) has announced the conversion of a US$130 million convertible note held by MDC Industry Holding Company , resulting in the issuance of 24,761,905 common shares to Ninety Fourth Investment Company Additionally, Equinox Gold and Ninety Fourth have entered into an agreement with BMO Capital Markets for a secondary offering of these shares at US$5.65 per share, totaling approximately US$140 million in gross proceeds.
The offering is expected to close around October 9, 2024, subject to conditions. Equinox Gold will not receive any proceeds from the sale. Following the offering, MDC will retain a second US$130 million convertible note with a September 10, 2025 maturity date and a US$6.50 per share conversion price.
Equinox Gold Corp. (TSX: EQX, NYSE American: EQX) ha annunciato la conversione di una nota convertibile da 130 milioni di dollari USA detenuta da MDC Industry Holding Company, con conseguente emissione di 24.761.905 azioni ordinarie a favore di Ninety Fourth Investment Company. Inoltre, Equinox Gold e Ninety Fourth hanno stipulato un accordo con BMO Capital Markets per un offerta secondaria di queste azioni a 5,65 dollari USA per azione, per un totale di circa 140 milioni di dollari USA in proventi lordi.
Si prevede che l'offerta si chiuda intorno al 9 ottobre 2024, soggetta a condizioni. Equinox Gold non riceverà alcun provento dalla vendita. Dopo l'offerta, MDC manterrà una seconda nota convertibile da 130 milioni di dollari USA con una data di scadenza 10 settembre 2025 e un prezzo di conversione di 6,50 dollari USA per azione.
Equinox Gold Corp. (TSX: EQX, NYSE American: EQX) ha anunciado la conversión de una nota convertible de 130 millones de dólares estadounidenses que poseía MDC Industry Holding Company, lo que resultó en la emisión de 24,761,905 acciones comunes a Ninety Fourth Investment Company. Además, Equinox Gold y Ninety Fourth han llegado a un acuerdo con BMO Capital Markets para una oferta secundaria de estas acciones a 5,65 dólares estadounidenses por acción, totalizando aproximadamente 140 millones de dólares estadounidenses en ingresos brutos.
Se espera que la oferta se cierre alrededor del 9 de octubre de 2024, sujeta a condiciones. Equinox Gold no recibirá ingresos de la venta. Tras la oferta, MDC retendrá una segunda nota convertible de 130 millones de dólares estadounidenses con una fecha de vencimiento del 10 de septiembre de 2025 y un precio de conversión de 6,50 dólares estadounidenses por acción.
Equinox Gold Corp. (TSX: EQX, NYSE American: EQX)는 MDC Industry Holding Company가 보유한 1억 3천만 달러 규모의 전환 사채의 전환을 발표했으며, 이로 인해 Ninety Fourth Investment Company에 24,761,905주의 보통주가 발행되었습니다. 또한, Equinox Gold와 Ninety Fourth는 BMO Capital Markets와 함께 이 주식에 대한 2차 공모 계약을 체결하였으며, 주당 5.65달러로 약 1억 4천만 달러의 총 수익을 목표로 하고 있습니다.
이번 공모는 2024년 10월 9일경 마감될 것으로 예상되며, 조건에 따라 달라질 수 있습니다. Equinox Gold는 판매로 인한 수익을 받지 않습니다. 공모 완료 후, MDC는 만기일 2025년 9월 10일인 두 번째 1억 3천만 달러 규모의 전환 사채를 보유하게 되며, 주당 6.50달러의 전환가를 가집니다.
Equinox Gold Corp. (TSX: EQX, NYSE American: EQX) a annoncé la conversion d'une note convertible de 130 millions de dollars américains détenue par MDC Industry Holding Company, entraînant l'émission de 24 761 905 actions ordinaires au profit de Ninety Fourth Investment Company. De plus, Equinox Gold et Ninety Fourth ont conclu un accord avec BMO Capital Markets pour une offre secondaire de ces actions au prix de 5,65 dollars américains par action, totalisant environ 140 millions de dollars américains en produits bruts.
L'offre devrait se clore aux alentours du 9 octobre 2024, sous réserve de conditions. Equinox Gold ne recevra aucun produit de la vente. Après l'offre, MDC conservera une deuxième note convertible de 130 millions de dollars américains avec une date d'échéance du 10 septembre 2025 et un prix de conversion de 6,50 dollars américains par action.
Equinox Gold Corp. (TSX: EQX, NYSE American: EQX) hat die Umwandlung einer konvertierbaren Anleihe im Wert von 130 Millionen US-Dollar, die von der MDC Industry Holding Company gehalten wird, bekannt gegeben, was zur Ausgabe von 24.761.905 Stammaktien an die Ninety Fourth Investment Company führt. Darüber hinaus haben Equinox Gold und Ninety Fourth eine Vereinbarung mit BMO Capital Markets über ein Nachangebot dieser Aktien zu 5,65 US-Dollar pro Aktie getroffen, was insgesamt etwa 140 Millionen US-Dollar an Bruttoerlösen ausmacht.
Es wird erwartet, dass das Angebot um den 9. Oktober 2024 geschlossen wird, vorbehaltlich der Bedingungen. Equinox Gold erhält von dem Verkauf keine Erträge. Nach dem Angebot wird MDC eine zweite konvertierbare Anleihe im Wert von 130 Millionen US-Dollar mit einem Fälligkeitsdatum am 10. September 2025 und einem Umwandlungspreis von 6,50 US-Dollar pro Aktie behalten.
- Conversion of US$130 million convertible note reduces current debt
- Secondary offering provides approximately US$140 million in gross proceeds to Ninety Fourth
- MDC retains a second US$130 million convertible note, representing continued investment
- Equinox Gold will not receive any proceeds from the secondary offering
- Issuance of 24,761,905 new common shares may lead to dilution for existing shareholders
Insights
The conversion of the
The
Investors should note that MDC retains a second
Overall, this transaction strengthens Equinox Gold's financial position, potentially improving its ability to fund operations and future growth initiatives in the gold mining sector.
The secondary offering of 24,761,905 shares represents a significant increase in Equinox Gold's public float, which could impact stock liquidity and trading volumes. This increased liquidity may attract more institutional investors and potentially lead to greater price stability.
The timing of this transaction is noteworthy, coming amidst volatile gold prices and economic uncertainty. It suggests that both MDC and the underwriters see value in Equinox Gold at current levels, which could be interpreted as a positive signal by the market.
However, the large block of shares being sold might create short-term selling pressure. Investors should monitor how the market absorbs this increased supply and its effect on share price in the coming weeks.
Long-term, the reduced debt load and improved balance sheet could make Equinox Gold more attractive to investors focused on financial stability in the mining sector, potentially supporting future share price appreciation.
The Base Shelf Prospectus is accessible, and the Prospectus Supplement will be accessible within two business days, through SEDAR+
VANCOUVER, British Columbia, Oct. 03, 2024 (GLOBE NEWSWIRE) -- Equinox Gold Corp. (TSX: EQX, NYSE American: EQX) (“Equinox Gold” or the “Company”) has issued 24,761,905 common shares of the Company (the “Common Shares”) to Ninety Fourth Investment Company LLC (“Ninety Fourth”), an affiliate of MDC Industry Holding Company LLC (“MDC”) on conversion of a US
Further, Equinox Gold and Ninety Fourth have entered into an agreement with BMO Capital Markets to complete a secondary offering (the “Offering”) of the Common Shares issued on conversion of the Note. Pursuant to the agreement, BMO Capital Markets has agreed to purchase, on a bought deal basis, 24,761,905 Common Shares from Ninety Fourth at a price of US
Net proceeds of the Offering will be paid directly to Ninety Fourth and Equinox Gold will not receive any proceeds from the sale of Ninety Fourth’s Common Shares.
Greg Smith, Equinox Gold’s President and CEO, commented: “Conversion of the US
MDC’s US
The Offering is expected to close on or about October 9, 2024, subject to customary closing conditions.
The Offering will be made in each of the provinces and territories of Canada, except Quebec, by way of a prospectus supplement (the “Prospectus Supplement”) to the Company’s short form base shelf prospectus dated October 1, 2024 (the “Base Shelf Prospectus”). The Company has filed a registration statement on Form F-10 (the “Registration Statement”) (including the Base Shelf Prospectus) and will file the Prospectus Supplement with the United States Securities and Exchange Commission (the “SEC”) in accordance with the multijurisdictional disclosure system established between Canada and the United States for the Offering. The Offering may also be made on a private placement basis in other international jurisdictions in reliance on applicable private placement exemptions. Before investing, prospective investors should read the Base Shelf Prospectus, the Prospectus Supplement, when available, the documents incorporated by reference therein, the Registration Statement containing such documents and other documents the Company has filed with the SEC for more complete information about the Company and the Offering.
When available, these documents may be accessed for free on the System for Electronic Data Analysis and Retrieval + (“SEDAR+”) at www.sedarplus.ca and on the SEC’s Electronic Data Gathering, Analysis and Retrieval system (“EDGAR”) at www.sec.gov.
Access to the Prospectus Supplement, the Base Shelf Prospectus and any amendments thereto are provided in Canada in accordance with securities legislation relating to the procedures for providing access to a shelf prospectus supplement, a base shelf prospectus and any amendment to such documents. The Base Shelf Prospectus is, and the Prospectus Supplement will be (within two business days from the date hereof), accessible through SEDAR+. An electronic or paper copy of these documents, when available, may be obtained, without charge, in Canada from BMO Capital Markets, Brampton Distribution Centre c/o The Data Group of Companies, 9195 Torbram Road, Brampton, Ontario, L6S 6H2 by telephone at 905-791-3151 Ext. 4312 or by email at torbramwarehouse@datagroup.ca, and in the United States from BMO Capital Markets Corp., Attn: Equity Syndicate Department, 3 Times Square, 25th Floor, New York, NY 10036 (Attn: Equity Syndicate) by providing BMO Capital Markets with an email address or mailing address, as applicable.
No securities regulatory authority has either approved or disapproved the contents of this press release. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any province, state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such province, state or jurisdiction.
About Equinox Gold
Equinox Gold is a growth-focused Canadian mining company operating entirely in the Americas, with eight producing gold mines and a clear path to achieve more than one million ounces of annual gold production from a pipeline of expansion projects. Equinox Gold’s common shares are listed on the TSX and the NYSE American under the trading symbol EQX.
Equinox Gold Contacts
Greg Smith, Chief Executive Officer
Rhylin Bailie, Vice President, Investor Relations
Tel: +1 604-558-0560
Email: ir@equinoxgold.com
Forward-looking Statements
This news release contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively, “Forward-looking Information”). Forward-looking Information in this news release relates to, among other things: completion of the Offering, including the receipt of regulatory approvals, the strategic vision for the Company and expectations regarding exploration potential, production capabilities, growth potential, and future financial or operating performance. Forward-looking Information can be identified by the use of words such as “will”, clear path”, “look forward”, “continuing”, and similar expressions and phrases or statements that certain actions, events or results “may”, “could”, “would” or “should” occur, or the negative connotation of such terms. Although the Company believes that the expectations reflected in such Forward-looking Information are reasonable, undue reliance should not be placed on Forward-looking Information since the Company can give no assurance that such expectations will prove to be correct. The Company has based Forward-looking Information in this news release on the Company’s current assumptions, expectations and projections about future events. While the Company considers these to be reasonable based on information currently available, they may prove to be incorrect. Accordingly, readers are cautioned not to put undue reliance on Forward-looking Information contained in this news release.
Forward-looking Information is subject to known and unknown risks, uncertainties and other factors that may cause actual results and developments to differ materially from those expressed or implied by such Forward-looking Information. Such factors include, without limitation: fluctuations in gold prices; fluctuations in prices for energy inputs, labour, materials, supplies and services; fluctuations in currency markets; operational risks and hazards inherent with the business of mining (including environmental accidents and hazards, geotechnical failures, industrial accidents, equipment breakdown, unusual or unexpected geological or structural formations, cave-ins, flooding, fire and severe weather); inadequate insurance, or inability to obtain insurance to cover these risks and hazards; employee relations; relationships with, and claims by, local communities and indigenous populations; changes in laws, regulations and government practices; legal restrictions relating to mining; and those factors identified in the Company’s Management’s Discussion and Analysis for the year ended December 31, 2023 and its most recently filed Annual Information Form, copies of which are available on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov. Except as required by applicable law, the Company assumes no obligation to update or publicly announce the results of any change to any Forward-looking Information contained or incorporated by reference into this news release to reflect actual results, future events or developments, changes in assumptions or changes in other factors affecting the Forward-looking Information. If the Company updates any Forward-looking Information, no inference should be made that the Company will make additional updates with respect to that or other Forward-looking Information. All Forward-looking Information contained in this news release is expressly qualified in its entirety by this cautionary statement.
FAQ
What is the conversion price of the US$130 million convertible note for Equinox Gold (EQX)?
How many common shares of Equinox Gold (EQX) were issued upon conversion of the note?
What is the price per share for the secondary offering of Equinox Gold (EQX) shares?
When is the expected closing date for Equinox Gold's (EQX) secondary offering?
What is the conversion price and maturity date of the remaining convertible note held by MDC in Equinox Gold (EQX)?
