Vizsla Silver Corp. (AMEX:VZLA) saw its stock tumble on Thursday after announcing the pricing of a $250 million issue of convertible senior unsecured notes.

The stock slid 13% in premarket trading, falling to $4.05 compared with Wednesday’s close of $4.67. The notes carry an interest rate of 5.00%, mature in 2031, and can initially be converted at roughly $5.84 per share—a 25% premium to the prior session’s closing price.

The Vancouver-based precious metals developer said it expects to receive approximately $239.4 million in net proceeds from the sale. That amount could rise to $285.9 million if the initial purchasers opt to buy an additional $50 million in notes.

Vizsla intends to deploy the funds toward advancing its Panuco Project, evaluating potential acquisitions, and meeting general corporate needs. The company also plans to spend about $39.6 million on cash-settled capped call transactions aimed at reducing potential dilution should the notes be converted.

The notes may be exchanged for cash, shares, or a mix of the two, at Vizsla’s discretion. The initial conversion rate stands at 171.3062 shares for each $1,000 in principal amount.

As part of the financing, the company entered into privately negotiated capped call arrangements with several financial institutions. The capped call’s initial cap price is $10.5075 per share, equal to a 125% premium to Wednesday’s closing level.

The offering is slated to close around November 24, 2025, pending standard regulatory approvals, including clearance from both the Toronto Stock Exchange and NYSE American.

Vizsla Silver stock price

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