Vizsla Silver Shares Drop Premarket After Convertible Notes Offering Prices

By Robb M. Stewart

Vizsla Silver's shares look set for a sharply weaker open after the Canadian silver explorer priced a $250 million offering of convertible notes, raising funds to develop its flagship project in Mexico and to prepare for possible future acquisitions.

In premarket trading in New York, the shares were down 13% after last closing at $4.67. The shares were last at C$6.57 on the Toronto Stock Exchange, up 14% so far this month and 44% higher over the last three months.

The Vancouver, British Columbia, company is offering convertible senior unsecured notes due 2031. The initial purchasers have a 13-day option from the date the notes are first issued to buy up to a total of $50 million more of the notes.

The notes will bear cash interest semi-annually at a rate of 5% per annum. The initial conversion rate for the notes will be 171.3062 shares per $1,000 of notes, equivalent to an initial conversion price of roughly $5.84 a share, a roughly 25% premium to Wednesday's closing price on NYSE American.

Vizsla said a portion of the proceeds from the offering will used to purchase cash-settled capped calls, which is intended to compensate for economic dilution.

The company this month released an independent feasibility study for its Panuco silver-gold project in Sinaloa, Mexico, which projects average annual production of 17.4 million ounces of silver equivalent at an all-in sustaining cost of $10.61 an ounce.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

November 20, 2025 07:09 ET (12:09 GMT)