Why Is Ramaco Stock Falling Today?

The company announced the pricing of its $300 million convertible senior notes offer.

• After expenses, Ramaco expects to raise about $290.9 million.
• The proceeds will fund the development of its rare earth and critical minerals project, the company said.
• Ramaco said that Goldman Sachs and Morgan Stanley, acting as underwriters, plan to conduct a separate public offering of Ramaco’s Class A common stock.

Shares of Ramaco Resources, Inc. (METC) tumbled 12% on Wednesday, after the company priced its $300 million convertible senior notes offer.

On Tuesday, Ramaco announced plans to raise funds through an underwritten public offering of $300 million in convertible senior notes due 2031, with an option for underwriters to purchase up to an additional $45 million to cover over-allotments.

Proceeds From The Transaction

After expenses, Ramaco expects to raise about $290.9 million, or $334.7 million if the option is fully exercised. Proceeds will fund capped call transactions and the development of its rare earth and critical minerals project. The capped calls are designed to limit dilution if the notes are converted into shares.

Additionally, Ramaco said that Goldman Sachs and Morgan Stanley, acting as underwriters, plan to conduct a separate public offering of Ramaco’s Class A common stock. The shares will be borrowed from third parties and sold to support hedging transactions by investors who purchase the convertible notes. To support hedging activities, Ramaco initiated a “concurrent delta offering.”

In this transaction, Goldman Sachs and Morgan Stanley will sell about 2.25 million borrowed shares at $24.25 per share. Unlike a typical equity sale, a delta offering does not involve issuing new shares, and Ramaco receives no proceeds from the transaction.

How Did Stocktwits Users React?

Retail sentiment on Stocktwits surrounding the stock turned to ‘neutral’ from ‘bullish’ a day earlier, amid ‘high’ message volumes.

A Stocktwits user sees the stock taking support at $20.

The stock has dropped to its lowest levels in nearly three months but has surged 133% so far in 2025.

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