Box Ships Inc (TEUFF)

[ivfk]

O/S Before Note (TEUFF): 2,900,000
O/S After Note (TEUFF): 31,372,525
Newly issued Shares (TEUFF): 28,472,525
Shares Converted as per Note (TEUCF): 36,000
TEUCF Conversion Price as per Note: $3.90
Purchase Power from Conversion: $140,400
Average 40% Discounted Price per TEUFF Share: $0.00493
Lowest TEUFF Trading Price over last 21 Days: $0.0082

As per my math above, the ex holder of 36,000 TEUCF shares now owns 28.4 Million TEUFF shares which is 91% of the Outstanding Shares. The conversion has an anti-dilution clause which prevents the converter from owning more than 4.99%.

Why would Box Ship allow this entity to convert this many shares? Did this conversion violate SEC rules since it was not approved by the shareholders? Why did Box Ship put an anti-dilution clause into the conversion note and then violate it. Could it be that the 'Related Entity' is the CEO himself or one of his companies or trusts? i.e. Neige International? (Neige International is the CEO's trust that owns the 208,000 TEUCF Box Ship preferred shares).