Osisko Shares Fall on Planned Convertible Notes Offering

By Katherine Hamilton

Osisko Development shares fell after the company shared plans for a convertible senior notes offering.

The stock fell 13% to $2.57 in after-hours trading Wednesday. Through the close, shares were down 16% this year.

The gold mining company said it plans to offer an aggregate principal amount of $225 million in a private placement offering of notes due 2031. Initial purchasers will also be eligible to buy up to $25 million additional notes.

The proceeds from the notes are expected to go toward privately negotiated cash-settled capped call transactions, as well as development of its Cariboo Gold project.

The transactions will cover the number of shares initially underlying the notes and are expected to compensate for the potential economic dilution upon any conversion of notes.

Osisko expects the financial institutions involved with the capped-call transactions will enter into derivative transactions concurrently or shortly after the pricing of the notes. This activity could increase the market price of shares or the trading price of the notes, Osisko said.

Double Zero Capital has indicated interest in buying up to $50 million of the notes, Osisko said.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

May 20, 2026 18:52 ET (22:52 GMT)