Replies to post #170817 on Spongetech Delivery Systems Inc (fka SPNGQ)

[wadirum1]

Why do I think they are reducing O/S?

Several reasons:

a) Last August/Sept/Oct my talks with SM indicated a plan to eliminate most or all of RM by the 10k for 2009.

b) The O/S peaked at 1.249 on 2/28, and was in fact reduced to 722mm by 4/16

c) PR stated goal of 500mm O/S

d) I think it would be in their interests to do so

e) I think it is relatively easy to do so: convert or buyback RM, retire shares bought back from float, and retire shares transfer to company by affiliates.

I think it is rather easy to reduce RM to 70mm and non-RM to 80mm.

Wadi