On February 2, 2009 Spongetech issued a Press Release that states in no uncertain terms that the company's Issued and Outstanding shares were approximately 700,000,000.
"This leaves the company's shares, issued and outstanding, at approximately 700,000,000."
On March 18, 2009 Spongetech issued a Press Release that once again states in no uncertain terms that the Issued and Outstanding shares are roughly 700,000,000, the same as they were on February 2nd, and that nothing of significance had occurred in the mean time.
"We noted on February 2 that there were roughly 700 million SPNG shares outstanding at that time. There have been no significant changes to date. All rumors to the contrary are unfounded and without merit."
In Spongetech's most recent 10Q report for the quarter ending February 28, 2009 it clearly states on page F-2 under Balance Sheet - Liabilities and Stockholders' Equity - that the Issued and Outstanding share count on February 28, 2009 was 1,249,451,605
"Common stock, $0.001 par value, 1,250,000,000 shares authorized, 1,249,451,605 and 365,473,214 shares issued and outstanding at February 28, 2009 and May 31, 2008"
Now whether or not this is an allowed accounting practice or just pure fraudulent, I do not know. For all we know Spongetech may have issued approximately 500,000,000 shares after February 2nd and then reacquired them before March 18th. (I fear we will never know since the Transfer Agent is still Gagged,, long after May 5th I might add.)
Maybe they consider issuing 500,000,000 shares as being of "no significant change"
I wonder what they do consider "significant"????????
What I do know is that it is my personal belief that this is most certainly deceptive.
As per Wikipedia -
Deception (also called beguilement, deceit, bluff, or subterfuge) is the act of convincing another to believe information that is not true, or not the whole truth as in certain types of half-truths.
As far as I am concerned this falls directly under the Fraud definition as stated on the FBI website for Securities Fraud concerning the word "deceptive"
" Securities fraud can be described as deceptive practices in the stock and commodity markets. Generally, securities fraud occurs when investors are enticed to part with their money based on untrue statements. "
Spongetech did roughly $5,000,000 in revenue with a profit of aprox. $1,200,000 for Fiscal Year 2008.
They are claiming they will do over $40,000,000 in revenue with a profit of aprox. $7,000,000 for Fiscal Year 2009.
AND YET THE PPS CONTINUES TO DROP LIKE A STONE WITH HUGE VOLUME AND A GAGGED TRANSFER AGENT... AND ALL THE WHILE MANAGEMENT BLAMES SHORT SELLERS.
WHAT IS THAT ALL ABOUT?
EITHER THERE IS A HUGE NAKED SHORT POSITION,,,WHICH IS ILLEGAL,,
OR ??????????? IS MANIPULATING THE PPS THRU SHARE MANIPULATION.(which is my guess by the way)
Who this person or persons is may never be known since Spongetech Management continues to hide it's actions behind a Gagged Transfer Agent.
I continue to ask myself, as well as asking management, why the need for a Gagged Transfer Agent.
I have been unable to answer this question to my satisfaction.
If any of my readers out there have the answer please feel free to educate me.
Thank You,,,Moe Speeks