Replies to post #274377 on Spongetech Delivery Systems, Inc. (fka SPNGQ)

[loanranger]

"Has anyone talked about this yet? "

Not as far as I noticed.
I don't know anything about the issue, so I looked back and found that his previous 13D (in 2003) carried the same phrase. I also noticed that the instructions call for the following:

(4) Classify the source of funds or other consideration used or to be used in making the purchases as required to be disclosed pursuant to Item 3 of Schedule 13D and insert the appropriate symbol (or symbols if more than one is necessary in row (4):

Category of Source

Symbol

Subject Company (Company whose securities are being acquired)
SC

Bank
BK

Affiliate (of reporting person)
AF

Working Capital (of reporting person)
WC

Personal Funds (of reporting person)
PF

Other
OO

So, if I understand correctly, the Pike phrase blurs the categories by implying that while the funds used were working capital funds, some of those funds could have been borrowed using securities as collateral. I looked over a bunch of 13D's and did not see similar "qualifiers". Is that the issue that has your interest and, if so, why? Or is it something else?

BTW, Happy New Year!

[P2O I'm from MO]

although neither fund can determine whether any funds allocated to purchase the shares of Common Stock were obtained from any margin account borrowings.

How bad can their accounting be? As bad as SPNG's? They must know the source of the funds to purchase unless for some foolish reason they are mixing funds in accounts. There still should be some audit trail. How crazy would that be?

[puppydotcom]

not that I know of ..

I thought it was interesting that Pike flipped 6,035,000 shares in a private transaction.

And then I read this part:

Quote:Although the above securities were acquired with working capital, the funds may have also used margin account borrowings made in the ordinary course of business, although neither fund can determine whether any funds allocated to purchase the shares of Common Stock were obtained from any margin account borrowings.