Spongetech Delivery Systems, Inc. (fka SPNGQ)

[z4lover]

Hey stox so I'm looking at our 19th day on the Reg sho.

we know thus by the SEC description the only reason that the security is still on REG sho being "new delivery failures resulting from long or short sales may have crossed the threshold, keeping the security on the SRO's threshold securities list; "

IV part 7 subset C "Reasons Why A Security May Stay on a Threshold List for Longer Than 13 Consecutive Settlement Days"

http://www.sec.gov/spotlight/keyregshoissues.htm

So we need to ask ourselves where are these new delivery failures coming from?

These shorts having their positions flagged, not able to create new positions.

Thus I have a few theories. Any thoughts on your own would be greatly appreciated

one they are going around and making all new positions with new broker dealers.. (very very unlikely)

Or the company has started to pull the certs on the shares they have bought back in the open market buy back.

As the shares are pulled the ridiculous web of cleared positions all starting to unravel causing an issue of FTD's, old FTD's which once were hidden which are suddenly popping out of no where...

A snow ball effect if you will... and as you pull the string to unravel the position more and more FTD's are attached...