Equinox Gold Announces Convertible Note Conversion and Bought Deal Secondary Offering

Core Viewpoint - Equinox Gold Corp. has issued 24,761,905 common shares to Ninety Fourth Investment Company LLC as part of the conversion of a US$130 million convertible note, enhancing liquidity and reducing debt [1][4]. Group 1: Share Issuance and Offering - The common shares were issued to Ninety Fourth, an affiliate of MDC Industry Holding Company, on conversion of a US$130 million convertible note [1]. - Equinox Gold and Ninety Fourth have entered into an agreement with BMO Capital Markets for a secondary offering of the common shares at a price of US$5.65 per share, totaling approximately US$140 million in gross proceeds [2]. - The net proceeds from the offering will be paid directly to Ninety Fourth, with Equinox Gold not receiving any proceeds from the sale [3]. Group 2: Management Commentary - The President and CEO of Equinox Gold stated that the conversion of the convertible note reduces current debt and enhances liquidity, while expressing satisfaction with MDC's partial capitalization of their long-term investment through the offering [4]. Group 3: Future Financial Instruments - Following the offering, MDC will retain a second US$130 million convertible note with a maturity date of September 10, 2025, and a conversion price of US$6.50 per share, representing approximately 4.22% of the issued and outstanding common shares on an as-converted basis [4]. Group 4: Offering Details - The offering is expected to close on or about October 9, 2024, subject to customary closing conditions [5]. - The offering will be made in Canada, except Quebec, through a prospectus supplement to the Company's base shelf prospectus [6].