I believe there is a "major" overreaction to this deal. For one, the conversion of the shares is at the company's option as in the news release and only if the shares have traded at 130% of $1.40 or $1.82 for 20 days prior :
The Debentures will be convertible at the holder's option into common shares of the Company at a conversion price of C$1.40 per common share. The debentures will not be redeemable prior to September 30, 2015. On and after September 30, 2015 and prior to maturity, the Debentures may be redeemed in whole or in part from time to time at the Company's option, at a price equal to their principal amount plus accrued and unpaid interest, provided that the volume weighted average trading price of the common shares on the Toronto Stock Exchange for the 20 consecutive trading days preceding the date on which the notice of redemption is given is not less than 130% of the conversion price.
Secondly, they are eliminating the $50 million revolving credit facility.
Thirdly, my hope is that the extra money raised will allow them to " bypass " the Sprott $35 million line available in November. That line was on much worse terms than this.
I think Tony did not like being dictated to and found a way around it.