RE:Strange relative prices? Yes, it is ridiculous. The implied put value in the debenture is 0.80-1.00 per share.
And the put only pays off if the stock is below the current price in 5 years.
Again, I think the institutions buying this though are not looking for 250-300% returns. They are good with 150% total return with very limited downside risk. I think that is the only logical thing for what is happening here.
To put things in context, only 500k common shares have traded below the 2.70 mark. That is $1.4M of paper hands selling the common. And institutions just bought $57.5M and $3.6M of capital has flowed into the debentures so far today.