EnCore Energy falls on planned $75 mln convertible debt sale

enCore Energy

19/08/2025 21:33

** Shares of uranium producer enCore Energy EU.O down 10.5% post-market to $2.31 as co seeks capital raise

** Dallas, Texas-based co announces private offering of $75 mln 5-yr convertible bonds (CBs)

** It plans to use net proceeds to repay amounts outstanding under its loan agreement and for general corporate purposes

** Co also intends to use portion of proceeds to enter into capped calls, derivative transactions employed to offset potential dilution

** With ~187.1 mln shares outstanding, co has roughly $485 mln market cap

** EU shares on Tues fell 9.5% to close at $2.58, down 24% YTD

** All 6 analysts rate stock "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))