What happened Shares of Dynavax Technologies (NASDAQ: DVAX) were nosediving 18.1% lower as of 11:42 a.m. EDT on Monday. The decline came after the company announced plans to offer $200 million in convertible senior notes due in 2026. So what The key word to note in Dynavax's announcement is "convertible." The notes that the company plans to issue will be able to be converted into shares. That means the value of Dynavax's existing shares could be diluted. When investors hear about potential dilution, they often head for the hills and create downward pressure on share prices. That's almost certainly why the biotech stock fell today. Image source: Getty Images. Issuing convertible notes is a common practice for companies, though. Dynavax plans to use the proceeds raised to pay off debt and other obligations under its term loan agreement. However, the company also intends to use some of the money to pay for capped call transactions. These are call options that will give Dynavax the right to purchase its own shares at a specified price. The company said that it expects these capped call transactions will offset the potential dilution to its stock. Now what There are several more important things for investors to watch with Dynavax than its convertible notes offering. Several of the company's partners will report results from clinical studies of COVID-19 vaccines that use Dynavax's CpG 1018 adjuvant this year. Dynavax also plans to launch hepatitis B vaccine Heplisav-B in Europe in the fourth quarter. 10 stocks we like better than Dynavax TechnologiesWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Dynavax Technologies wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Keith Speights has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Source