Actually what i did not do (or appreciate then) was how much extra equity value due to the debt changes.
When I did the EV then I assumed the Company valuation post = pre (just different capital structure) when in fact there is the extra benefit of less interest payments which will drive the equity up, leading to a higher EV (and stock price)
On the basis of the $2.50 stock price
Original Capital Struture was 525 Debt, 250 Equity, Total of 775 EV
New Capital structure (then) would be be 350 Debt plus 775-350 = 425 equity plus the extra benefit of less interest payments which adds another 140 million equity (7 * 20 from earlier post) I suspect this is why we saw the price continue to increase. My first thought then was the stock would level off around $2.50 which it did not do. This extra value (reduced interest payments) is now in the stock so it looks like we dilute at 3.20/3.30 now having gained that extra benefit.