Replies to post #219908 on Spongetech Delivery Systems, Inc. (fka SPNGQ)

[rdailey4]

If the shorts paid $2 per share to the Co to cover, then there would be 3 Billion shares O/S, but the Co would have $6 billion in cash with no debt. That would make each share worth $2 on a cash basis alone. Co could then do a RS of 1 for 5, reducing O/S to 600 million at $10 per share. Go to nasdaq and everyone is happy. Shorts would be gone, no manipulation, and if you want to sell you can.

And before anyone says it is ridiculous for the shorts to pay $2 per share, how much do you think it would cost them if there was a major squeeze?

[TigerTrader83]

Think about it like this the company sells those shares to the shorts for $1 each, which would be a bargain, because if a squeeze happens their average pps will be much higher then $1. Then they do a tender offer for .60. We get .6 a share and the company gets to keep the .4 for further growth. That seems like a win for everyone