1.5 Billion Naked is real
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NEW YORK, Sept. 15 /PRNewswire-FirstCall/ -- SpongeTech(R) Delivery Systems, Inc. June 2008
Message from SpongeTech(R) CEO, Michael Metter:
Dear Shareholders:
1)As the Company continues to build off of a great 2008 year, we feel it is important to update our shareholders on events that are taking place within the Company and comment on the recent trading activity of our stock.
2)Management believes that our stock has been influenced by the illegal practice of "naked short selling". These people, or entities, are trying to undermine the shareholders' confidence in our Company, trying to induce you to sell your stock, and, in simple terms, hoping that if you do they will be able to buy back their short position sale at a significantly lower
price. They use detailed and complicated systems, and even sell from overseas through other exchanges, to sell nonexistent shares all day long trying to create a disparity between legitimate buy and sell orders.
3)These unscrupulous entities strategize to create stock price erosion in an effort to try to force us to continue to dilute the Company to raise funds. As you know, we have invested significant money into our Company and hold a large position in stock that is not registered and cannot be sold.
The float of the Company is significantly lower than the authorized and outstanding shares issued by the transfer agent. There are upwards of 300,000,000 shares that cannot, and will not, be sold into the market that could affect price dilution of our security.
We recently instituted a stock buyback program of over 25,000,000 shares, and we are evaluating the current market conditions surrounding our stock trading activity and expect to take action to rectify the situation.
The Company is in a very good cash position; our EBITDA is very strong and will continue to grow. Management is confident going forward and that the Company expects to see the same success across the children, medical, and household product lines that we have enjoyed, and continue to build, with both our automotive and our pet products. We will continue to expand all
our lines with our patented delivery technology, that coupled with an aggressive ad campaign will help us to reach our goal to be branded as the "America's Cleaning Company."
Following is a Corporate Update;
FINANCES
Un-audited revenue for the first quarter of 2009 ending August 31, 2008 were approximately $5,000,000, an increase of over $1,000,000 from the fourth quarter of our last fiscal year.
With our balance sheet and cash positions, we continue to greatly improve due to the increased sales of our products.
ORDERS
Confirmed signed orders for the next nine months of fiscal year 2009 are over $32,000,000. We are experiencing a strong demand in the United States and a very strong demand from international buyers as well.
MARKETING
Marketing efforts continue to provide new customers for our "Car Care" products. We continue to advertise and promote exploring many new possibilities such as NASCAR Racing, the Howard Stern Show, and the Chris Russo Show, venues that are broadcast on the SIRIUS / XM Radio Networks. We have formally introduced the Uncle Norman's(TM) Pet Sponge and we are very
optimistic that we will be able to announce new retail accounts for that product in the very near future.
We continue to increase our production capacity, purchase fabrication molds, and increase our sales and support team to handle our increased growth.
PRODUCTION
Independent sub-contractors using our patented technology and brand names produce our products here in the United States through our relationships with independent sub-contractors using our patented technology. As the Company enters into new product lines, we will be able to fulfill production capacity demands organically as well as new strategic relationships.
OPERATIONS
Under the SpongeTech(R) Delivery Systems corporate umbrella, we plan to operate SpongeTech(R) as five operating divisions as new products are introduced:
1) Auto Care Products
2) Pet Care Products (Uncle Norman's(TM) Pet Sponge)
3) Health Care and Beauty Products (Puddle Pals),
4) Household Cleaning Products
5) Bio Pharma Products
MANAGEMENT
Management is actively seeking other opportunities for its patented delivery system. Our Research and Development team are currently testing and evaluating new uses for our delivery system. We now have a staff of over 25 people who work with us on a daily basis. This in itself reemphasizes that we are prepared and determined to continue to grow at our rapid rate.
OUTLOOK
We are negotiating with additional major retailers who are now evaluating and "test marketing" our products. We will update shareholders if our proposals are accepted.
We continue in negotiations with a major supplier of Brand Name household cleaning products. Our discussions focus on SpongeTech(R) using its patented technology to produce various household cleaning products using the Brand Name of our prospective client. We are also negotiating the
development of various children's sponges including sponges using the licensing rights of some popular children's characters. Let me again say, while we are hopeful, there is no assurance of our entering into a final agreement with these clients.
We continue to evaluate and test our product delivery system using our patented technology in other products. These include suntan lotion, topical medical uses, beauty aids, and other hardware and houseware product solutions.
In conclusion, we are pleased and excited with our progress, look forward to continued growth this year, and will continue to communicate with our shareholders about our business as things develop.
Best Regards,
Michael Metter, SpongeTech(R) CEO
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