Vizsla Silver Corp. (AMEX:VZLA) saw its stock tumble on Thursday after announcing the pricing of a $250 million issue of convertible senior unsecured notes.
The stock slid 13% in premarket trading, falling to $4.05 compared with Wednesday’s close of $4.67. The notes carry an interest rate of 5.00%, mature in 2031, and can initially be converted at roughly $5.84 per share—a 25% premium to the prior session’s closing price.
The Vancouver-based precious metals developer said it expects to receive approximately $239.4 million in net proceeds from the sale. That amount could rise to $285.9 million if the initial purchasers opt to buy an additional $50 million in notes.
Vizsla intends to deploy the funds toward advancing its Panuco Project, evaluating potential acquisitions, and meeting general corporate needs. The company also plans to spend about $39.6 million on cash-settled capped call transactions aimed at reducing potential dilution should the notes be converted.
The notes may be exchanged for cash, shares, or a mix of the two, at Vizsla’s discretion. The initial conversion rate stands at 171.3062 shares for each $1,000 in principal amount.
As part of the financing, the company entered into privately negotiated capped call arrangements with several financial institutions. The capped call’s initial cap price is $10.5075 per share, equal to a 125% premium to Wednesday’s closing level.
The offering is slated to close around November 24, 2025, pending standard regulatory approvals, including clearance from both the Toronto Stock Exchange and NYSE American.