Spongetech Delivery Systems, Inc. (fka SPNGQ)

[ID Supermoney]

The company buys back from the float which is the shares you and I buy from. They do this so that the the shares decrease and the price of shares rises.
Float 342 million buy back 150 million gives 200 million shares.
This boosts the price. To get to $4.00 to get on NASDAQ.

Most small companies have approx. 30-60 million shares. O/S

The O/S on SPNG is 722 million of which RME owns Approx 280 million shares. These are in effectively restricted shares.

This is borrowed money ie . bank to guareentee there money back.
They buy them at 40% stock price so if the stock decreases they are in effect quarenteed there loan and no loss occurs to RME.

THe company pays back only the original price they borrowed the money at.

THerefore the float is VER important to remain low to get the share price up.

If they pay a dividend the dividend is higher if less shares are available.