Box Ships Inc (TEUFF)

[temp luvs amy]

You are correct, if he still owns them. It is a great paradox and is called a "poison pill" or approximates one. AFAIK, the moves are and were legal. A greater paradox is created if shareholders revolt with ownership of the common majority. It seems unlikely that B retained control of those based on knowledge that his last reverse split failed.

So if somebody wanted to trigger the pill, they could take control of the company via common, and convert their preferred immediately. IIRC, the conversion is "optional" to the holder, and who ends up with control, and for how long is the question.

I went over this "make believe" scenario: The preferred I own, would control more than half the company if I was able to be the only one converting. "I heard" that B sold a large number of his preferred but I can't verify that. I would still have to negotiate some sort of compensation for the other preferred holders so they don't convert.


The total comes to tens of millions, and though I like my business plan, I just don't see it gaining "that much" popularity and credibility without major support from other holders of either class and probably some Wall Street bankers as well.