This was almost the worst timing possible for this conversion transaction to occur. The Brexit has hit oil prices which makes it much easier to short WLL down to much lower prices. If this had occurred as oil prices were increasing then the dilution would have still been bad, but less than it appears it will be now.
I would be surprised if it were to reach $6 again, but that would be a function of the market melt-down and not the conversion. They probably only need to get it into the upper 7's for a week to get the average price down to the minimum conversion price.
From what I understand, it will be the average price over the 25 days post-agreement. So, to get this to as low an average price as possible, it has to go well below $8.75 to get the maximum conversion number of shares. I have been wanting a position in WLL but am holding for even better "conversion" prices.