04:43 PM EDT, 08/19/2025 (MT Newswires) -- enCore Energy (EU.V, EU) shares dropped 11% in after-hours Nasdaq trading after the company on Tuesday it will raise US$75 million in a placement of convertible senior notes offering due August 15, 2030.

The offering consists of a private placement to qualified institutional buyers and the company intends to grant initial purchasers a 13-day option to purchase an additional US$11.25 million of notes.

The interest rate, initial conversion rate and other terms of the Convertible Notes will be determined at the time of the pricing of the offering, the uranium company said.

Interest is payable semi-annually unless repurchased, redeemed, or converted earlier, and enCore reserves the right to redeem the notes for cash anytime after August 21, 2028, provided its share price remains above 130% of the conversion price for a specified duration. Redemption would occur at par value plus accrued interest.

Lastly, the redemption price will be equal to 100% of the principal amount of the Convertible Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. The interest rate, initial conversion rate, and other terms of the Convertible Notes will be determined at the time of the pricing of the offering.

enCore states it intends to use part of the proceeds to enter into capped call transactions to reduce dilution if the notes are converted to shares, with the remainder going toward repaying outstanding debt and for general corporate purposes.

enCore shares were last seen down US$0.28 to US$2.30 after hours. They closed down $0.07 to $3.73 on the TSX Venture Exchange.