Replies to post #191557 on Spongetech Delivery Systems, Inc. (fka SPNGQ)

[Anthill]

Drew not to be a basher, but the press release said " In conjunction with the reverse stock split, the Board of Directors and the holders of more than a majority of SpongeTech's voting capital stock have approved a decrease in SpongeTech(R)'s authorized capital. The post-split authorized capital will be 900 million shares of common stock, 25 million shares of Class B Stock and 40 million shares of preferred stock. "

Ant

[pragmatist]

Why would a company have 900 million AS with only 1% outstanding? Is there any other legit company in the world with only 1% of A/S outstanding?

Also, didn't the company previously state that OS would be at 500 million previously?

Have a good one

[talbaine]

The issue is not that it can be split, I beleive the issue

is that it should be reduced by same same factor.

Example: pps reaches .08 the day before the reverse split

so using the AS the company could dish out 900 million more

shares at .08 = $72,000,000

Problem is that the day after the reverse split the pps is now

$8 so using the AS the company could dish out 900 million more

shares at a price of now $8 = $7,200,000,000 . . . yes thats

$7.2 billion