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Authorized Common Shares to 900 Million Shares SPNG
SpongeTech Begins Process to Lower Outstanding to Approximately 500 Million
Shares
NEW YORK--(Business Wire)--
SpongeTech Delivery Systems, Inc., "The Smarter Sponge", (OTCBB: SPNG) is
pleased to announce that the Company is taking action to amend its Articles of
Incorporation to reduce the number of common shares that the Company has
authorized to 900,000,000 (nine hundred million) shares. In addition, the
Company has also begun the process to lower its outstanding shares to
approximately 500,000,000 (five hundred million) shares.
As reported in the Company's 8-K filing on May 26, 2009, SpongeTech amended its
Certificate of Incorporation to increase its authorized common shares from
1,800,000,000 (one billion, eight hundred million) to 2,000,000,000 (two
billion). The increase was to provide the Company with the ability to pursue a
transaction such as the acquisition of Dicon Technologies. Subsequently, the
Board of Directors had approved the acquisition of Dicon Technologies which was
completed on July 9, 2009 as a cash transaction, without any shares to be issued
for the acquisition and without any dilution to its current shareholders;
therefore enabling the Company to take action and reduce the authorized shares
substantially. Furthermore, as reported in the Company's 3rd Quarter Form 10-Q
filing on April 20, 2009, SpongeTech had 722,866,061 shares of common stock
issued and outstanding and the Company is also taking action to lower its
outstanding shares by 30%. The Company's actions in this regards will include
the continuation of the common stock repurchase and retirement program from the
open market as well as the retiring of restricted (144R) shares of common stock
currently owned by the Company and its affiliates.
"We are excited to be moving quickly to complete the process of reducing both
our authorized and outstanding shares as well as provide clarity," commented
Michael Metter, CEO of SpongeTech. "This significant reduction is an expression
of both the progress that the Company and its innovative product lines have made
to date. We are confident that there will be more advances to come in the near
future with regards to our product development and penetration of what we fell
is currently a targeted market that is extremely large, yet grossly
underserved." Metter continues, "I have always commented that it is SpongeTech's
AI
