Spongetech Delivery Systems, Inc. (fka SPNGQ)

[cowtown jay]

"Do you also remember that 5 days after SPNG was suspended, they dropped off that list? How exactly did those fails disappear, when the stock was not trading?"

My focus on the RegSHO list was on the fact that we were on it, when the SEC suspended trading. I never even looked at how long we stayed on the list after that.

So when you said that SPNGQ dropped off the list 5 days after the suspension, I was trying to recall why "5 days" rang a bell for me. I found it, just now:

"In late October 2008 the SEC updated Regulation SHO requiring that all short sellers must locate, borrow and deliver any shares they have shorted, no exceptions, by T+3 settlement date. If not, a buy-in must be forced by the broker dealer that the short seller transacted through by the opening of the market on T+4. Since a company first appears on the naked short list when short sellers have been failing to deliver for 5 consecutive trading days, SPNG should theoretically never be on the naked short list again."

http://www.reuters.com/article/idUS133411+31-Aug-2009+BW20090831#5me1vLWw4plOJTEx.97

There were no failures to deliver for 5 consecutive days.

But, I wasn't really satisfied with that, so I kept looking. I found that the OTC may have discontinued displaying SPNGQ data BECAUSE of the suspension. Another reason may have been because of a lack in adequate current information. Such as a list of shareholders?

http://www.otcmarkets.com/stock/SPNGQ/quote

Again, SpongeTech still had failures to deliver two years after this.