Spongetech Delivery Systems Inc (fka SPNGQ)

[wadirum1]

I agree with much of your post. At 7 cents, 3B O/S means market cap is $210mm. That doesn't seem totally outrageous to me, though I think I'd want to see evidence that they can sell Spongebob in mass retail for assigning that market cap. And management would need to offer far greater transparency to get that market cap on a reliable basis.

Apart from a large O/S, I don't see the reason for a large A/S unless it has to do with enabling shorts to cover (and I'm sceptical about whether the shorts exist).

On the other hand, the 1:100 RS from 500mm makes plenty of sense to me. They wanted to be absolutely sure that the PPS couldn't tank so low that it would jeopardize Nasdaq uplisting. Forward splits after uplisting would be easy to do.

Wadi