Spongetech Delivery Systems, Inc. (fka SPNGQ)

[chipgiii]

I had to look this up so bear with me.

Private Placement
What Does Private Placement Mean?
Raising of capital via private rather than public placement. The result is the sale of securities to a relatively small number of investors. Investors involved in private placements are usually large banks, mutual funds, insurance companies, and pension funds.

Investopedia explains Private Placement
Since a private placement is offered to a few, select individuals, the placement does not have to be registered with the Securities and Exchange Commission. In many cases detailed financial information is not disclosed and a the need for a prospectus is waived. Finally since the placements are private rather than public, the average investor is only made aware of the placement usually after it has occurred.

Do they even have to make this public knowledge?