Spongetech Delivery Systems Inc (fka SPNGQ)

[talbaine]

300 million post split is equal to an increase in the a/s

by roughly 3300%. Let me work this out and someone please tell

me that I am doing something wrong.

Authorized shares are the total number of shares that the

is able to issue out if they choose to do so granting them

the current share price per each of the authorized shares.

Currently this would mean 900 million * 0.144(current pps)

which would equal $129,600,000 or $129.6 million.

Now if the reverse split happened tomorrow the authorized

shares would be reduced to 300 million. What a deal right?

Somehow it looks like a bad deal since those 300 million

can now be issued at the new reverse split price which is

now 100 * 0.144 = $14.40.

So 300 million * $14.40 = $4,320,000,000 or $4.32 BILLION!

$4.32 billion / $129.6 million = 33.33 meaning a 3,333%

increase in the amount of shares they can issue.

Since we know to change a number into a % we move the decimal

2 places to the right. EX: .5 = 50% thus 33.33 = 3,333%

(the 33.33 had a repeating decimal)

I like the company but this is hardly something to cheer about.

Post split authorized needs to be something reasonable, or maybe

that massive a/s will be used to let the shorts off the hook for

cheap = no short squeeze . . .