They can't arbitrage instantly because it takes time to issue shares.
By definition-from Wiki
"Arbitrage is not simply the act of buying a product in one market and selling it in another for a higher price at some later time. The transactions must occur simultaneously to avoid exposure to market risk, or the risk that prices may change on one market before both transactions are complete"
The key here is simultaneous. Sure NQM shares are trading at a discount now but if you bought them, and then CQT fell 50% before your shares were issued, then you would make a loss. Only if the shares were issued simultaneously would you have a true arbitrage opportunity.
On a separate note, I think we will see the SP hold around the 50c mark until the end of the month so that the VWAP will be 50c for the NQM issue and then the foot will come off the brake.
CQT Price at posting:
50.5¢ Sentiment: None Disclosure: Held
