Thank you.
And, yes, it never fails to amaze/amuse. The degree to which these boards host so much posted nonsense. The earlier mindless yammering about the SEC and the gagging of a company's TA. The, now, mindless yammering about FTD's relative to massive abusive shorting issues. On and on. Seemingly no end to it.
And going back to last year...
(May 8th … Mr. Metter)
'Due to both time constraints and the huge number of calls and emails I have been receiving, I have decided to write this update and distribute it to shareholders as well as interested parties.
PRODUCT SHIPMENTS
Product shipments for the first two months (March and April) of our fiscal fourth quarter, which ends May 31, were $2,200,000, and we are estimating shipments for the full fourth quarter to approximate $3,300,000. We are excited and very pleased with the market acceptance of our products, and also pleased with the results of our marketing program.
ORDER BACKLOG
Our order backlog for both Pet Care and Auto Care products is in excess of $23,000,000. We are experiencing strong demand in the United States and very strong demand from international buyers.
PRODUCTION
Independent sub-contractors using our patented technology and brand names produce our products here in the United States. These sub-contractors have adequate capacity to meet our growing demands.
FINANCES
Our balance sheet and cash positions have greatly improved due to the increased sales of our products. We do not expect to have any dilutive financing in the near future.
OUTLOOK
We are currently in negotiations with major retailers who are now evaluating and 'test marketing' our products. For contractual and competitive reasons, we cannot further elaborate. At this time, I may add, we do not have signed contracts or firm orders and there is no assurance that our proposals to these clients will be accepted.
We are also in negotiations with a major supplier of Brand Name household cleaning products. Our discussions focus on SpongeTech using its patented technology to produce various household cleaning products using the Brand Name of our prospective client. Let me again say, while we are hopeful, there is no assurance of our entering into a final agreement with this client.
We are also evaluating and testing 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 with our progress and look forward to continued growth.'
[ Our balance sheet and cash positions have greatly improved due to the increased sales of our products. We do not expect to have any dilutive financing in the near future. ]
(November 20th)
'SPNG … CEO Michael Metter reported today that the Corporate buy-back of the Company's common shares is almost completed. Repurchased stock will soon be returned to treasury and removed from the trading float. The Board of Directors has convened a meeting to discuss additional positive measures to reduce the total outstanding shares in SpongeTech's(R) stock. Possible actions being contemplated by the Company are to exercise the repurchase option that the Company has on the 660 million shares currently held by RM Enterprises. The repurchase of equity would significantly reduce the outstanding number of shares of the Company stock thereby decreasing the Company's overall market cap. Additionally, the Board of Directors will be discussing the feasibility of a new corporate stock buy-back program.
Michael Metter, CEO of SpongeTech(R) comments, 'The management team feels that these mechanical steps to reduce the outstanding number of shares will be a positive step in changing the current trading pattern of our stock.'
COO, Steven Moskowitz adds, 'The management is committed and prepared to support any and all permissible actions to maintain the fundamental value of our common stock.'
[ committed and prepared to support any and all permissible actions to maintain the fundamental value of our common stock ]
And from earlier this year…
(January 8th)
'SPNG … is pleased to announce that the SpongeTech(R) Board of Directors is retiring seventy-nine million shares (79,000,000) of SpongeTech(R)'s common restricted (R144) stock from RM Enterprises. This stock will be retired to the Company's Treasury. Upon completion of this transaction, RM will still own approximately 600,000,000 restricted shares. The Board states that further share reductions are being contemplated.
Michael Metter, CEO of SpongeTech(R) comments, 'This initial transaction represents the first step in the restructuring of the corporate capitalization so that the company can place itself in the best possible position for future growth. The Company is exploring other viable options for any and all possible opportunities that may present themselves. It is important to note that this is only the first step of the process and is not the end. The Company believes that the stock is being artificially manipulated and as such is currently examining several options that can be employed for the purpose of enhancing shareholder value.'
Mr. Metter added 'Despite the economic slowdown now being felt in the world economy our business remains strong. For our second quarter 2009, ending November 30, 2008, the 10Q to be filed shortly with the Securities Exchange Commission (SEC), will show we are 'on track' to meet or exceed our forecast for sales of $40,000,000 with profit expected to exceed $7,000,000 for our fiscal year ending May 31, 2009. We expect to be announcing new orders with new channels of retail distribution throughout America for our products that will catapult us with future sales and earnings in our next fiscal year 2010 that begins June 1, 2009.'
[ The Company believes that the stock is being artificially manipulated and as such is currently examining several options that can be employed for the purpose of enhancing shareholder value.' ]
(January 15th)
'SPNG ... is pleased to announce today the company's current share structure. The total authorized shares as of second quarter ending November 30, 2008 were approximately 960,000,000 common shares issued and outstanding. Since then, the Company has retired seventy-nine million shares (79,000,000) of SpongeTech(R)'s restricted common shares (R144) stock from RM Enterprises last week and another forty-six million shares (46,000,000) of SpongeTech(R)'s restricted common shares (R144) stock from RM Enterprises this week, which reduces RM Enterprises total holding to approximately 560,000,000 of SpongeTech(R)'s restricted common shares (R144) stock.
The Company has also completed a stock repurchase plan of fifty-five million shares (55,000,000) of common shares from the open market.
As of January 15, 2009 the share structure has been reduced to approximately 780,000,000 common shares issued and outstanding.
SpongeTech(R) Delivery Systems, Inc., CEO, Michael Meter said, 'In an effort to position ourselves favorably among our investors, shareholders, and the public market, we have significantly reduced the Company's share structure with the cooperation of our largest shareholder RM Enterprises and we will continue to do so.'
[ In an effort to position ourselves favorably among our investors, shareholders, and the public market ]
That which has been PR'd to-date having very largely proved up. No argument. No complaints. While at the point at which the following comment was PR'd, market level was largely stagnant, in around $0.02...
[ The Company believes that the stock is being artificially manipulated and as such is currently examining several options that can be employed for the purpose of enhancing shareholder value. ]
The constant mindless yammering about massive abusive shorting is getting tiresome. The ongoing nonsense. Ridiculous claims of 500m and such. And in the face of the trading pattern reality. In the face of the SEC having implemented a few long overdue rules/regs. amendments. The rest of it. Time to put to rest said nonsense. Getting a grip.
While on the subject of the senior listing our having heard that the NASDAQ meeting went well. A 'two thumbs up' situation. The Council being understandably impressed with company fundamentals. And a consolidation of the Outstanding stock in achieving nirvana? Well, we have from IR the message that any such will result in a need of changing the company's ticker symbol. And whether temporarily, or permanently, we can't say. Only that such appears to be the case. With any such change being wholly damaging. Branding consideration.
And, yes, we know that during the Conference, the initial Q&A, Mr. Metter answered a certain and specific question a certain and specify way...
"Would you entertain a 1:100 reverse split to get listed?"
"Well, we’ll deal with it when…Right now we’re going to go there on the basis of what the stock is going to grow to. The time has come for us to move off the Bulletin Board."
[ Right now we’re going to go there on the basis of what the stock is going to grow to. ]
And a statement made prior to the NASDAQ meeting. Prior to 'black' Friday. With our having heard, additionally, that management came away from the meeting having M&A in mind. The Council unwilling to make any concessions.
Where we now stand. As any concession(s) made and management would've been all over it/them. PR('s). No time wasted. Material company event(s). SEC rules/regs. Full, fair, timely disclosure considerations.
With formal word about the meeting, about achieving the senior listing, to come. To soon arrive. Not to mention the recent meeting regarding pursuing yet another lucrative marketing contract with "another major stock exchange company." And much material else. As talked about.
Much in the PR pipeline. And again...
(Mr. Moskowitz)
'The management is committed and prepared to support any and all permissible actions to maintain the fundamental value of our common stock.'
The 'black' Friday antics having not pleased management. The gross undervaluation situation not playing well in light of the push to achieve the senior listing.
And stating it plainly…
Can management achieve a sustained $4.00 pps at basement level? How about $1.00?
And now let's consider M&A. That which we've, very much, heard management was considering coming away from the NASDAQ meeting. And what would the market level reaction be to a PR('s) speaking to intent to merge or be acquired? A little 'creative' thinking? Quick. Simple. Cost-effective. Senior listing achieved. Discussions. Negotiations.
Industrial strength formal word on the way. Material company events circumstance. Countering the 'black' Friday antics in the best way possible. The building of a very real company.
With the major markets/exchanges lackluster this session. The current trading pattern being entirely dismissible in light of the bigger picture. Senior listing. Institutional monies. Growth/expansion. So on.
(Mr. Metter)
"The time has come for us to move off the Bulletin Board."
(Mr. Moskowitz)
'The management is committed and prepared to support any and all permissible actions to maintain the fundamental value of our common stock.'
None of it being rocket science.
Not even slightly.
Fun and profit on the way.
That, to truly smile about.
Stay tuned.
AI
