Why McEwen Mining Stock Is Tumbling Today

Shares of McEwen Mining (NYSE: MUX) stumbled on Wednesday, falling more than 12% by 10:45 a.m. EST. Weighing on the gold mining stock was the pricing of a public stock offering.

McEwen Mining announced that it had priced a public offering of 37.75 million units, which consist of one share of stock and one warrant to buy a share of common stock in the future. The company priced the offering at $1.325 per unit, raising $50 million in total, with each warrant exercisable to buy the stock at $1.7225 per share over the next five years. That deal price is well below where shares have traded recently. This discount, as well as the dilution from all the new stock, is weighing on the share price today.

Image source: Getty Images.

Source Fool.com