Arbitrage opportunity?Right now BYL is $1.12 bid and BYL.DB is $93.50 on the ask.
Logically, given that the Debenture Resolution passed, common shareholders should sell their common shares at $1.12 and use the proceeds to buy the BYL.DB at $93.50. Indeed, I would have expected that BYL.DB would now be trading very close to $100, maybe even a bit higher, because that would be roughly equivalent to buying the common at $1.12, which is today going on actively.
Owning the DB at $100 arguably, at this moment, makes more sense than owning the common at the current price. You would get 30 days (following May 19) in which you could convert at the new conversion price (likely around $1.12).
Owning the DB would give you 30 days of protection in both directions. So if, say, at the end of May the company reports great news and the stock goes to $2 then you convert and you're no worse off than if you'd held the common. But if, say, bad news comes out and the stock drops to 70 cents then you don't convert. (If you then want back into the common story you sell the DB and just buy BYL on the open market.)
Anyways, current pricing on BYL vs. BYL.DB looks like a market inefficiency.