EnCore Energy falls after upsized $100 mln convertible debt sale

enCore Energy

20/08/2025 11:42

** Shares of uranium producer enCore Energy EU.O down 10.1% before the bell to $2.32 as it secures capital raise

** Dallas, Texas-based enCore early Weds announces pricing offering of $100 mln 5.5% 5-yr convertible bonds

** Offering size increased from $75 mln

** Initial conversion price set at $3.29, 27.5% above stock's last close of $2.58

** EU intends to use $10.6 mln of net offering proceeds to repay amounts outstanding under its loan agreement, remainder for general corp purposes

** It also plans to use $10 mln for capped calls, derivative transactions employed to offset potential dilution; the cap price of $4.52 is 75% premium to stock's last sale

** With ~187.1 mln shares outstanding, co has $483 mln market cap through Tues

** EU shares on Tues fell 9.5%, extending YTD loss to 24%

** Early Mon, co said it acquired 5,900 acres of private land located adjacent to its Alta Mesa uranium project in Texas

    ** All 6 analysts rate EU shares "buy" and median PT is $4.50, LSEG data reflects

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))