Spongetech Delivery Systems, Inc. (fka SPNGQ)

[Mingy]

I'm sorry, that is just not correct. Last paragraph, they did loan money, and they are expecting to get shares from getfugu. LOL


On November 5, 2009, SpongeTech Delivery Systems, Inc. (“SpongeTech”) and R.M. Enterprises International Inc. (an entity in which SpongeTech’s directors and officers hold direct and/or indirect ownership interests, and of which certain of SpongeTech’s officers and directors serve as officers and/or directors) (“RM”) entered into a Settlement Agreement (the “Settlement Agreement”) with GetFugu, Inc. (“GetFugu”). By way of background, on September 8, 2009, SpongeTech announced that it intended to invest $4 million into GetFugu`s mobile-based web search and e-commerce technology. An aggregate of $1,750,000 was advanced to GetFugu in anticipation of the entry into a definitive investment agreement. On September 24, 2009, SpongeTech announced the rescission of investment plans in GetFugu and that GetFugu had advised SpongeTech that it currently did not have the funds to repay the $1,750,000 and that it was seeking alternative financing sources to fund a reimbursement. On September 30, 2009, SpongeTech filed a lawsuit in the United States District Court for the Southern District of New York against GetFugu (the “Lawsuit”). The complaint alleged breach of contract, breach of fiduciary duty, common law fraud, conversion, willful misconduct and unlawful appropriation of funds by GetFugu and sought to recover the funds which were previously delivered to GetFugu.


Pursuant to the Settlement Agreement, the parties agreed to an immediate dismissal of the Lawsuit with prejudice, and each of SpongeTech and RM released GetFugu, and GetFugu released each of SpongeTech and RM, from any claims, rights, damages or obligations against the other, including without limitation and causes of action that either were asserted or could have been asserted in the Lawsuit. In addition, GetFugu agreed to issue to SpongeTech and RM an aggregate of 5,250,525 shares of common stock of GetFugu (the “Shares”) in consideration for the $1,750,000 which GetFugu had previously received, and granted piggy-back registration rights with respect to the Shares. SpongeTech will also be placed on GetFugu’s mobile search platform.

http://sec.gov/Archives/edgar/data/1201251/000114420409057095/v165164_8k.htm