Long Run Explor Ltd Ord WFREF

Divergence between debentures and common

[HamSandwich]

Any idea on why this is happening?  Once the terms of the deal were announced, this was the action:

stock:  rallied from 14c to 38c, now at 33.5c

debenture: rallied from 21c to 47c, now at 32c

And in this past week the stock is up around 10% and the debentures are down around 10%.

Is this just an inefficiency due to the stock not being very liquid? 

You would think that if the terms of the deal are going to be revised they could only be revised in favour of the debenture holders - right now they're being offered 75c on the dollar and they may vote against.  I can't see a scenario where the outcome is the debenture holders take a further haircut so the common holders get more.