Osisko Development announced it has closed $225 million in convertible notes, net of approximately $215.9 million. The company says it will use the funds primarily to develop its gold project in BC Cariboo.
The initial investors paid 96.4% of the principal amount of the bonds. Osisko also gave them 13 days to buy up to US$25 million. Separately, an affiliated fund, Double Zero Capital, has agreed to purchase US$50 million worth of notes at full price. Some early investors will also receive 1.28 million warrants, giving them the right to buy shares later.
The securities can be converted into shares at a rate of up to $3.68 per share, which is 25% higher than Osisko’s stock price on May 20, 2026. The conversion rate can be adjusted, but only to a maximum equal to $2.94 per share. Because the bonds and associated shares are unregistered, they cannot be sold to Canadian residents until December 23, 2026, unless the seller qualifies for an exemption.
The Cariboo project is 100% owned by Osisko and is the company’s flagship location in central British Columbia, and is viewed as key to the company’s growth strategy.
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