RE:RE:RE:RE:Debenture Arbitrage The Bear CaseIndomitableFire wrote: Got it, so whatever it is called, when the financiers of the bought deal short the stock to hedge their debenture risk. I thought it was debenture arb, but there must be a different name. They openly said they were short the stock in October to hedge their debenture risk.
It's the other way around. They hedge their short with their debenture conversion price. But it only works when the start the short at a higher price than the debenture conversion price (to cover their short). Considering the only debentures have a conversion price of $2.45, the stock price must be above that for this to be a considered action for them. Stock price hasn't been over $2.45 since January 2018.