Spongetech Delivery Systems, Inc. (fka SPNGQ)

[cowtown jay]

Remember the proposed reverse split?

SPONGETECH® DELIVERY SYSTEMS ANNOUNCES
REVERSE STOCK SPLIT TO MOVE CLOSER TO NASDAQ LISTING


NEW YORK, NY – September 8, 2009 – SpongeTech® Delivery Systems, Inc. (“SpongeTech”) “The Smarter Sponge™”, (OTCBB: SPNG) today announced that its Board of Directors has unanimously approved a reverse split of SpongeTech®’s issued and outstanding capital stock at a 1-for-100 split ratio. The reverse stock split, which is expected to take effect on September 22, 2009, subject to receipt of necessary regulatory approvals, has also been approved by the holders of more than a majority of SpongeTech’s voting capital stock.

http://www.sec.gov/Archives/edgar/data/1201251/000114420409047372/v159866_ex99-1.htm

Of course, it never happened.

SPONGETECH® DELIVERY SYSTEMS CANCELS
REVERSE STOCK SPLIT

NEW YORK, NY – September 22, 2009 – SpongeTech® Delivery Systems, Inc. (“SpongeTech”) “The Smarter Sponge™”, (OTCBB: SPNGE) today announced that its Board of Directors has decided to cancel its previously announced reverse stock split until after the Form 10-K for the Company’s fiscal year 2009 has been filed.

CEO Michael Metter said, “We originally planned for the reverse stock split to take effect after the filing of our Form 10-K for fiscal 2009 to give our shareholders the opportunity to evaluate our financial performance and growth prospects first. In light of the delay in filing, we have decided that to proceed with the reverse stock split would not be in the best interests of our shareholders.”

http://www.sec.gov/Archives/edgar/data/1201251/000114420409050122/v161351_ex99-1.htm

But was the delay in filing the 10K really the reason for the cancellation of the reverse split? Ot was it due to regulatory concerns about a Bad Actor(s)?

"Kurt Krammer and his firms Mazuma Corporation, Mazuma Funding Corporation, and Mazuma Holding Corporation are not connected to us (Ecolocap) in any manner whatsoever and accordingly we believe that FINRA's actions are erroneous and as such without any basis in law. Kurt Krammer is the president of Asher Enterprises from whom we have borrowed money. Our relationship with Asher Enterprises is one of debtor/creditor and accordingly Kurt Krammer and his firms Mazuma Corporation, Mazuma Funding Corporation, and Mazuma Holding Corporation are not "connected to us" as a matter of law. Further, it is our position that Asher Enterprises is not "connected to us" as a matter of law."

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=10210190