Box Ships Inc (TEUFF)

[Toxic Avenger]

Keep in mind no one buyer will buy all the converted shares. In fact, it would be surprising if anyone bought a large number - the investors with enough money to buy even $20k worth of common shares are far too smart to do so.

It will be a bunch of retail lotto players.

Also note, that toxic note holders don't convert then sell. They sell first to lock in the price, then convert to cover.

If people keep buying these toxic shares, TEUFF could be around for decades, but that will just produce more losses. The legal challenges are a desperate hope by investors who have no other hope of recovering any of their money.

Though at least in Mr. Chu's case, it appears he may have been mollified by his chance at converting some preferred shares.