Spongetech Delivery Systems Inc (fka SPNGQ)

[Carpedeim357]

Reaper that is true back then getting venture capital was a lot easier. VC's take a lot when they fund. Since dot com days not so easy to get VC for startups and they all want control. Still best way to fund is with owners own money and they have personal money stake in success. When you invest your own millions management is much more motivated to build a big successful company so they do not lose it. They could have just like most issued unrestricted shares sold them into market or to toxic funder and not risked any money right? Says a lot when they put in the money in how much they believe in the future of SPNG.

As far as what bank would loan money? The fact is RM's bank is who required them to issue shares as collateral they way they have. The fact they do it based on how well they think SPNG will do next few years not because they think they can sell all the shares now. If they did not think SPNG business plan was solid they have not allowed RM to give money to SPNG at any discount. Shares won't be worth much if SPNG does not build a big future.

The bank needs company to be successful. I doubt many who hold shares to will still be in SPNG when the company is 100's of millions. The company is about long term shareholders not people who will dump on next spike.