Stox, in regards to your folowing statement:
"Previously, we were aware of a successful petition regarding an increase to 2.75b from 2.5b. And now a petition to increase the issuable common to 3b. In the pipeline as of September 21. In line with the cancelation of the consolidation"
The petition was to bring the A/S dowm from 2B to 900m but the investigative posting crowd on ihub had contacted Delaware only to learn the A/S indeed was increased from 2.5b to 2.75b. The original goal came from a PR which was released on July 29th, 2009 and read as follows:
SpongeTech® Delivery Systems, Inc., “The Smarter Sponge™”, (OTCBB: SPNG) is pleased to announce that the Company is taking action to amend its Articles of Incorporation to reduce the number of common shares that the Company has authorized to 900,000,000 (nine hundred million) shares. In addition, the Company has also begun the process to lower its outstanding shares to approximately 500,000,000 (five hundred million) shares.
As reported in the Company's 8-K filing on May 26, 2009, SpongeTech® amended its Certificate of Incorporation to increase its authorized common shares from 1,800,000,000 (one billion, eight hundred million) to 2,000,000,000 (two billion). The increase was to provide the Company with the ability to pursue a transaction such as the acquisition of Dicon Technologies. Subsequently, the Board of Directors had approved the acquisition of Dicon Technologies which was completed on July 9, 2009 as a cash transaction, without any shares to be issued for the acquisition and without any dilution to its current shareholders; therefore enabling the Company to take action and reduce the authorized shares substantially. Furthermore, as reported in the Company's 3rd Quarter Form 10-Q filing on April 20, 2009, SpongeTech® had 722,866,061 shares of common stock issued and outstanding and the Company is also taking action to lower its outstanding shares by 30%. The Company's actions in this regards will include the continuation of the common stock repurchase and retirement program from the open market as well as the retiring of restricted (144R) shares of common stock currently owned by the Company and its affiliates.
"We are excited to be moving quickly to complete the process of reducing both our authorized and outstanding shares as well as provide clarity," commented Michael Metter, CEO of SpongeTech®. "This significant reduction is an expression of both the progress that the Company and its innovative product lines have made to date. We are confident that there will be more advances to come in the near future with regards to our product development and penetration of what we fell is currently a targeted market that is extremely large, yet grossly underserved." Metter continues, "I have always commented that it is SpongeTech®'s commitment to shareholders to gain their trust through transparency, progress and hard work. It always has been and always will be our goal to constantly build on our shareholders confidence."
"The reduction of the Company's authorized shares is being done to assure our shareholders that we are careful and prudent with the issuance of our stock," stated SpongeTech®’s COO Steven Moskowitz. "The significant reduction in both the authorized as well as outstanding share structure will serve to further enhance our overall earnings per share and make our stock more attractive to own for both current as well as prospective investors."
This PR, at the that time, is what caused me to double my investment with the company as it spoke volumes to thier commitment to the share value.
I am in no way bashing as I believe the increase to 3B is necessary and plays a role in what is happening. I also believe that the "hush" campagne is for a specific purpose as well.
To further exasperate the investing public, our cleaning company had intended to maintain a 900m A/S count after a 100 to 1 reverse split (which was corrected fromm a 250 to 1). In summary our A/S was targeted to be 900m while our O/S was targeted to be 50M - the equivalent of 722,870,00 and 13011660000 (Trillion) respectivly.
I am hoping they have a plan because at this point the "longs" are backed in a corner without a chance of a friday closing bell share price cash out - which incidently was ridiculisly low due to the fun PR's and NY Post headlines of last week
As many have mentioned already - they have our backs or they are jamming a knife in our banks and this comming few weeks will tell the story. It appears that the A/S and O/S situation is either being handled and changed to fit the next phase of each plan or is being changed at every drunken whim.
These future sessions will be intersting to say the least.
