RM, i will respond, but first, i encourage you and everyone else here to think about this:
Everyday we hear about "dilution this" and "dilution that" on this board. People often forget that these are called the capital markets for a reason- they were created so that companies can raise capital- not so individuals could swing in and out and make a quick buck. I honestly don't care if the company has to sell shares from time to time to fund initial growth, because if you are a true investor, you understand that it may pay off one day. You invested because you believe in the product, the concept, and inherently the management. I have very little respect for anybody who swings in and out of the market and then has the nerve to complain about a company.
To those on this board who are not invested for the long haul, management doesn't owe you anything. Zip, Nada, Zilch. If one has not taken a long position, you have not contributed to the continued success in any way, shape, or form to SpongeTech. In the words of WB, "according the name 'investors' to institutions and individuals that trade actively is like calling someone who repeatedly engages in one-night stands a 'romantic.'" (In my opinion, what is happening to SPNG is nothing more than statutory rape.)
To those of you who do not have a long-term investment in SpongeTech, management doesn't owe you expedited filings... they don't owe you stock buyback plans... and they certainly don't owe you answers, explanations or anything else. If you have not invested long-term in this company, you have gained so much and given nothing back. Its not right, but we let it go. However, If you have illegally shorted this company it will not be let go. You will not be forgiven nor shown mercy, because you have shown SpongeTech none. Some "investors" if you will, make a lot of money by attacking shareholders and entrepreneurs, cutting off their ability to raise capital, then leaving these businesses for dead along with the dreams of building something great. Then these unscrupulous individuals target another, and another, and another, leaving nothing but ruined lives and ruined investors. This almost happened to SpongeTech, but the comapany's management, much like it's true investors, are smarter and will prevail. To anyone deterred by the negativity on this board, think for yourself. If you have a question call the company, look it up using a trusted source, and don't let anybody change your mind. To SPNG investors who complain about having to wait for this or that, look at a 1-year chart and chill. Enough said. Complaining about SPNG's growth day to day is like watching the grass on your front lawn grow everyday and complaining that it never gets longer...yet for some reason, we are all outside mowing our lawns every weekend....
With all that in mind, here is my response- management obviously didn't want the Dicon deal to fall through... nobody knows how long SpongeTech and Dicon had been in talks. Maybe the deal was different at one point- maybe at one point Dicon wanted shares in SPNG rather than all cash, who knows... what we do know is that when all is said and done, it was an all cash deal.I actually looked into it- as i verify all the PR's i am able to, and raising the A/S is standard operating procedure for companies before an acquisition. Same thing happened in the Porsche/VW merger. It is an insurance policy against the deal falling through, and if they had needed to use shares to get it done. Thats fine. I, and any other true long would have done the same if it came to that.
