Allied Farmers stock fell by 13% to 15 cents after trading in its shares resumed on Thursday morning.
Shares fell as low as 13c at one stage, as existing shareholders sold stock for the first time since Hanover Finance investors approved a $400 million deal to swap their bonds in the failed finance company for shares in Allied Farmers.
Hanover's 16,000 investors will be issued their new Allied Farmers shares early next week. Many are expected to sell straight away, causing the stock to fall further.
Meanwhile, Allied Farmers is awaiting the approval of Hanover's banks to formally sign off the purchase of its loan books, to complete the deal.