Do your DD Monday, September 15 2008 3:00 PM, EST
SpongeTech(R) Delivery Systems, Inc. CEO Michael Metter Issues Corporate Update and Fiscal 2009 Q1 Outlook
PR Newswire "US Press Releases "
NEW YORK, Sept. 15 /PRNewswire-FirstCall/ -- SpongeTech(R) Delivery
Systems, Inc. (OTC Bulletin Board: SPNG) today delivers a corporate update and
fiscal 2009 Q1 outlook to the shareholders. The past several months have been
a productive as well as an extremely exciting period in our Company's growth
phase. This update will expound upon the recent successes and what is to be
expected moving forward in subsequent quarters.
Message from SpongeTech(R) CEO, Michael Metter:
Dear Shareholders:
As the Company continues to build off of a great 2008 year, we feel it is
important to update our shareholders on events that are taking place within
the Company and comment on the recent trading activity of our stock.
Management believes that our stock has been influenced by the illegal
practice of "naked short selling". These people, or entities, are trying to
undermine the shareholders' confidence in our Company, trying to induce you to
sell your stock, and, in simple terms, hoping that if you do they will be able
to buy back their short position sale at a significantly lower price. They
use detailed and complicated systems, and even sell from overseas through
other exchanges, to sell nonexistent shares all day long trying to create a
disparity between legitimate buy and sell orders.
These unscrupulous entities strategize to create stock price erosion in an
effort to try to force us to continue to dilute the Company to raise funds.
As you know, we have invested significant money into our Company and hold a
large position in stock that is not registered and cannot be sold. The float
of the Company is significantly lower than the authorized and outstanding
shares issued by the transfer agent. There are upwards of 300,000,000 shares
that cannot, and will not, be sold into the market that could affect price
dilution of our security.
We recently instituted a stock buyback program of over 25,000,000 shares,
and we are evaluating the current market conditions surrounding our stock
trading activity and expect to take action to rectify the situation. The
Company is in a very good cash position; our EBITDA is very strong and will
continue to grow. Management is confident going forward and that the Company
expects to see the same success across the children, medical, and household
product lines that we have enjoyed, and continue to build, with both our
automotive and our pet products. We will continue to expand all our lines
with our patented delivery technology, that coupled with an aggressive ad
campaign will help us to reach our goal to be branded as the "America's
Cleaning Company."
Following is a Corporate Update;
FINANCES
Un-audited revenue for the first quarter of 2009 ending August 31, 2008
were approximately $5,000,000, an increase of over $1,000,000 from the fourth
quarter of our last fiscal year.
With our balance sheet and cash positions, we continue to greatly improve
due to the increased sales of our products.
ORDERS
Confirmed signed orders for the next nine months of fiscal year 2009 are
over $32,000,000. We are experiencing a strong demand in the United States and
a very strong demand from international buyers as well.
MARKETING
Marketing efforts continue to provide new customers for our "Car Care"
products. We continue to advertise and promote exploring many new
possibilities such as NASCAR Racing, the Howard Stern Show, and the Chris
Russo Show, venues that are broadcast on the SIRIUS / XM Radio Networks. We
have formally introduced the Uncle Norman's(TM) Pet Sponge and we are very
optimistic that we will be able to announce new retail accounts for that
product in the very near future.
We continue to increase our production capacity, purchase fabrication
molds, and increase our sales and support team to handle our increased growth.
PRODUCTION
Independent sub-contractors using our patented technology and brand names
produce our products here in the United States through our relationships with
independent sub-contractors using our patented technology. As the Company
enters into new product lines, we will be able to fulfill production capacity
demands organically as well as new strategic relationships.
OPERATIONS
Under the SpongeTech(R) Delivery Systems corporate umbrella, we plan to
operate SpongeTech(R) as five operating divisions as new products are
introduced:
1) Auto Care Products
2) Pet Care Products (Uncle Norman's(TM) Pet Sponge)
3) Health Care and Beauty Products (Puddle Pals),
4) Household Cleaning Products
5) Bio Pharma Products
MANAGEMENT
Management is actively seeking other opportunities for its patented
delivery system. Our Research and Development team are currently testing and
evaluating new uses for our delivery system. We now have a staff of over 25
people who work with us on a daily basis. This in itself reemphasizes that we
are prepared and determined to continue to grow at our rapid rate.
OUTLOOK
We are negotiating with additional major retailers who are now evaluating
and "test marketing" our products. We will update shareholders if our
proposals are accepted.
We continue in negotiations with a major supplier of Brand Name household
cleaning products. Our discussions focus on SpongeTech(R) using its patented
technology to produce various household cleaning products using the Brand Name
of our prospective client. We are also negotiating the development of various
children's sponges including sponges using the licensing rights of some
popular children's characters. Let me again say, while we are hopeful, there
is no assurance of our entering into a final agreement with these clients.
We continue to evaluate and test our product delivery system using our
patented technology in other products. These include suntan lotion, topical
medical uses, beauty aids, and other hardware and houseware product solutions.
In conclusion, we are pleased and excited with our progress, look forward
to continued growth this year, and will continue to communicate with our
shareholders about our business as things develop.
Best Regards,
Michael Metter, SpongeTech(R) CEO
For more information, please contact Investor Relations at
1-877- SPONGE-T, and/or visit the Company's website at: www.spongetech.com .
About SpongeTech(R) Delivery Systems, Inc.
SpongeTech(R) Delivery Systems is a development stage company, which
designs, produces, and markets a unique line of reusable cleaning products for
household use. These sponge-based products utilize SpongeTech(R)'s
proprietary, patent (and patent-pending) technologies involving hydrophilic
(liquid absorbing) foam and polyurethane matrices. The Company's sponges are
specially configured with an outer contact layer and an inner matrix, the
latter of which comes pre-loaded with specially formulated soaps and wax that
are released when the sponge is wetted and applied to a surface with minimal
pressure. The Company's current product line is designed for Car Care and
Uncle Norman's(TM) Pet Sponge, however, SpongeTech(R) is currently exploring
additional applications for its technology including an anti-bacterial,
kitchen and bath cleaner, as well as a unique 'foaming' bath sponge for
children.
"Safe Harbor Statement" Under The Private Securities Litigation Reform Act
of 1995: The statements in the press release that relate to the Company's
expectations with regard to the future impact on the Company's results from
new products in development are forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. The results
anticipated by any or all of these forward-looking statements may not occur.
Additional risks and uncertainties are set forth in the Company's Annual
Report on Form 10-KSB for the year ended December 31, 2005, the Company's
Quarterly Report on Form 10-QSB for the first quarter ended March 31, 2006.
The Company undertakes no obligation to publicly release the result of any
revisions to these forward-looking statements that may be made to reflect
events or circumstances after the date hereof, or to reflect the occurrence of
unanticipated events or changes in the Company's plans or expectations.
Contact:
SpongeTech(R) Delivery Systems, Inc.
Investor Relations:
Bill Young, 1-877-776-6438
wayoung55@aol.com or info@spongetech.com
The Investor Relations Group
212-825-3210
Investor Relations: Rachel Colgate or Michael Crawford
Media Relations: Steven Melfi / Lynn Granito
SOURCE SpongeTech(R) Delivery Systems, Inc.
