Paragon Shipping Inc. (OTCMKTS:PRGNF) comes in the list of penny stocks in the dry bulk shipping industry that has a base in the center of the industry’s geographic core in Greece. The shares price has been in an oblivion along with other dry bulk players for the past eight years as shipping prices wallow in an operational bear market. Fortunately, due to surprise win of Donald Trump in US Presidential elections, the shipping market has gone into a frenzied and wild short squeeze after a series of intense reverse splits in last few months by many of the sector’s major plays.

The buzz

Paragon Shipping reported the expiration of its initially announced proposal to exchange properly delivered and sanctioned 8.375% senior notes 2021 issued in $25 denominations, collectively called the “Paragon Notes” for shares of common stock of Paragon under the “Exchange Offer” in last week of October.

Based on data offered by the Exchange Offer depository, 84,588 Notes or nearly 11.3498% of the due “Paragon Notes” were released and not reliably withdrawn from the proposal. Each owner of a Paragon Note, who before the Expiration Date reliably offered and didn’t withdraw all Paragon Notes owned by such Holder, are eligible to receive ten shares of stock for each company’s Note, which shall consist any unpaid and accrued interest thereon.

Following the Exchange Offer, notes holders who gave their notes also agree to the elimination of certain sections and covenants of the Paragon Notes’ Indenture released August 8, 2014. Because the requisite count of exchanged Notes to adjust the Paragon Notes’ Agreement was not obtained, the Paragon Notes’ Agreement will not be revised pertaining to the Exchange Offer & Consent Solicitation.

Notes holders who offered and didn’t withdraw their ‘Notes’ in the offer by the expiration date will not be eligible to any future interest on such ‘Notes’ or any accumulated but unpaid interest, as of November 3. It will be irrespective of when the offer closes, and any later interest that would then have been received on such Paragon Notes will be considered paid upon receipt of the stock in the offer.