ENVX - Why Enovix Stock Plummeted by 8% This Week
2023-04-21 18:17:00 ET
Enovix (NASDAQ: ENVX) was a stock that didn't produce much electricity on the market this week. According to data compiled by S&P Global Market Intelligence , the lithium battery specialist's share price fell by 8% during the period. That drop was attributable to a new financing effort undertaken by the company.
On Tuesday, Enovix announced it was floating $150 million worth of convertible senior notes in a private placement. These securities have an annual interest rate of 3%, to be paid bi-annually, and they mature on May 1, 2028. The company has also granted the initial buyers of the convertible senior notes the option to purchase up to an additional $22.5 million worth of the securities within 13 days of the offer's issue.
The notes are to be convertible at the option of their investors as long as they meet certain conditions. The company will not redeem them before May 6, 2026. After that time, it has set certain criteria for its stock's price performance for the holders to qualify for redemption.
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Why Enovix Stock Plummeted by 8% This Week