Spongetech Delivery Systems, Inc. (fka SPNGQ)

[txwatcher91]

The reason for the 1/100 reverse split is to make sure they stay above the minimum PPS to get listed on Nasdaq. If they do say a 1/25 R/S, then that would put the share price right at $5, however they have to stay above that min share price for I believe 90 days to become listed. They likely did a 1/100 R/S to make sure that they stay well above that min price for the required time period (90 days)so they can become listed. What good would it do if they do say a 1/25 RS, and then share price drops to say $2.50 after a few weeks? That would put the whole RS as a waste of time and shareholders money, however by doing a larger RS they are making sure that they only have to do this RS once, and that they can become listed on the Nasdaq for sure. JMHO on things, I've seen this happen before and I think management is just trying to make sure we get listed on Nasdaq and is taking precautions to only have to do a RS once. I also think after listing on the Nasdaq, that a forward split would follow as the share O/S would be a meager 5-10M and a forward split would be necessary to increase the number of shares especially as demand increases.