Q: Good day,
In a recent announcement, EQX indicated that US$130 million conv debt is being converted into equity, and it talks about a secondary offering for the same amount - Q. Is that secondary offering to cover the debt, or is it in addition to the shares being issued for the debt conversion?
Thanks.
In a recent announcement, EQX indicated that US$130 million conv debt is being converted into equity, and it talks about a secondary offering for the same amount - Q. Is that secondary offering to cover the debt, or is it in addition to the shares being issued for the debt conversion?
Thanks.
5i Research Answer:
EQX converted a $130M note held by Ninety Fourth Investment Companu into shares. It also engaged BMO and executed a bought deal with Ninety Fourth Investment to sell these shares (24.7 million) to investors. Thus, Ninety Fourth is selling its converted shares, and no money is received by EQX in these transactions, but it does convert debt into equity.