Replies to post #30850 on Spongetech Delivery Systems, Inc. (fka SPNGQ)

[rdailey4]

Why does it obviously mean it is higher? Sometimes, guess what, the O/S goes down. There are other reasons for increasing A/S other than dilution, at least dilution for dilution sake. Such as a potential stock divy or split, acquistions or mergers, etc.

[Wrinkles]

So OG hear me out, you are an asst mod here. You obviously have a dog in this hunt unlike our 3 or 4 daily bashers with an agenda against any stock. With that being said, why do you think they are diluting? What is your best guess? Any coincidence that amount of NSS is somewhat close to the amount A/S was raised? O/S has not been raised? Or do you think it is just operating capital? I live 90 miles northwest of NYC and I see or hear spng ads everywhere, radio and television daily. That has to be costly obviously, so do you think they are just raising dough for expenses?

[GeeMoneyDollar]

OG,

What if ole SPNGy received a $100mm order and needed to raise funds in order to produce product for the first installment?

Capital loan markets are non existant, so they went back to RME for a few million dollar loan in exchange for restricted shares, as they've done several times in the past?

What if that few million loan would yield $20mm in earnings in the next 12 months? and part of the money went to buying back those restricted shares at cost.

What if ole SPNGy was under a non-disclosure agreement with the company that placed the order for the time being? Hence the lack of visibility.

Just throwing out a plausible scenario, but I would deem that as a positive reason the A/S was increased.