Canadian Solar's stock fell sharply by 6.98% during intraday trading on Wednesday, reflecting investor concerns over the company's financial strategy.
The decline followed Canadian Solar's announcement of a proposed offering of $200 million convertible senior notes due in 2031. Such offerings often lead to dilution of existing shareholders' equity, which can negatively impact stock prices in the short term. The proceeds are intended to fund U.S. manufacturing and solar solutions, but the market reaction suggests apprehension about the potential dilution and debt burden.