Denison Mines (DNN) Shares Hurt by $300-Million Debt Issuance

We recently published 10 Stocks Facing a Total Meltdown. Denison Mines Corp. (NYSEAmerican:DNN) is one of the worst-performing stocks on Wednesday.

Denison Mines dropped its share prices by 6.48 percent on Wednesday to close at $2.02 apiece as investors soured on its planned $300 million fundraising program through the issuance of convertible senior notes.

In an updated statement, Denison Mines Corp. (NYSEAmerican:DNN) upsized its debt offering to $300 million from $250 million initially. The notes will carry a 4.25-percent yield per annum, to be paid semi-annually, and can be converted into cash, stocks, or both.

If converted into stock, noteholders will be able to receive 342.9 common shares for every $1,000 worth of notes held, equivalent to an initial conversion price of $2.92 apiece.

Denison Mines Corp. (NYSEAmerican:DNN) said the conversion price represents a premium of 35 percent from its closing price of $2.16 on August 12.

According to Denison Mines Corp. (NYSEAmerican:DNN), proceeds from the offer will be used to support the development of its uranium development projects, including the Wheeler River Uranium project, alongside other general corporate purposes.

The offer is expected to close on Friday, August 15, subject to certain closing conditions.

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