HIMS is trading at $23.98 (4.3% down) in pre-market after the company announced its intention to offer $300 million in convertible senior notes due 2032.
- The company intends to use the net proceeds for its international expansion, including the proposed acquisition of Eucalyptus, and for investments in technology and AI capabilities.
- Convertible notes can lead to share dilution in the future, which often causes a negative reaction from the stock market.
- The offering includes an option for the initial purchasers to buy an additional $45 million in notes.