Tungsten miner Almonty slides on $700 mln convertible bond sale

Almonty Industries

05/06/2026 12:08

** Tungsten producer Almonty Industries' ALM.O shares down 10.5% premarket on Fri to $18.50 after securing capital raise
** ALM announces pricing private offering of $700 mln 2.25% convertible bonds due 2031
** Initial conversion price of $27.40 represents 32.5% premium to stock's last sale of $20.68 on Thurs
** Co intends to use $50 mln of net offering proceeds to refinance debt and approx $543 mln for working capital and general purposes, including potential acquisitions
** It also plans to use $83 mln to fund capped call transactions to mitigate dilution; initial cap price is $41.36
** ALM listed in the U.S. last July after $90 mln IPO
** In 2026, co completed Phase 1 commissioning at its flagship Sangdong Mine in South Korea in March, and relocated its headquarters from Canada to Dillon, Montana, in April
** Through Thurs, ALM stock up 135% YTD for nearly $6 bln market cap. Stock closed at $4.77 in its Nasdaq debut

(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))