SpongeTech® Delivery Systems Takes Steps to Reduce Authorized Common Shares to 300 Million
September 11 2009 - 5:30AM
Business Wire
SpongeTech® Delivery Systems, Inc. (“SpongeTech”) “The
Smarter Sponge™”, (OTCBB: SPNG) today announced the Company is
taking action to amend its Articles of Incorporation to reduce the
number of common shares that the Company has authorized to 300
million shares. The reduction will take effect simultaneously with
the previously announced reverse split, which will be effective on
the close of business on September 22, 2009, subject to necessary
regulatory approvals.
CEO Michael Metter commented, "This is another significant
reduction in SpongeTech’s authorized share structure. The actions
we have taken demonstrate that we are prudent with the issuance of
our stock and committed to making the right decisions for the
Company’s long-term interests.”
COO Steven Moskowitz added, “The reduction illustrates our
determination to provide clarity with respect to SpongeTech’s
capital structure and enhance our stock’s desirability for both
current and prospective investors. We believe this step, combined
with our planned listing on NASDAQ and our many initiatives to
expand the company’s product portfolio and market penetration, will
help elevate SpongeTech’s profile and gradually establish our
Company as a global player.”
SpongeTech’s authorized common shares refer to the maximum
number of common shares that the Company is permitted to issue. The
term outstanding shares refers to the number of shares the Company
has issued and are currently held by investors and shareholders.
The Company’s outstanding shares are the shares that will be
subject to the previously announced reverse stock split.
In addition to the 300 million shares of common stock,
SpongeTech’s post-split authorized capital will include 25 million
shares of Class B Stock and 40 million shares of preferred
stock.
About SpongeTech® Delivery Systems, Inc.
SpongeTech® Delivery Systems, Inc. designs, produces, and
markets unique lines of reusable cleaning products for Car Care,
Child Care, Home Care and Pet Care usages. These sponge-like
products utilize SpongeTech®'s proprietary, patent and
patent-pending technologies and other technologies involving
hydrophilic (liquid-absorbing) foam, polyurethane matrices or other
ingredients. The Company's sponge-like products are pre-loaded with
specially formulated ingredients such as soap, conditioner and/or
wax that are released when the sponge is soaked and applied to a
surface with minimal pressure. SpongeTech is currently exploring
additional applications for its technology in the health, beauty,
and medical markets. SpongeTech® Delivery Systems, Inc. intends to
globally brand its products as The Smarter Sponge™.
Safe Harbor Statement
Under The Private Securities Litigation Reform Act of 1995: The
statements in this press release that relate to the Company's
expectations with regard to the future impact on the Company's
results from new products in development are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. The results anticipated by any or all of these
forward-looking statements may not occur. Additional risks and
uncertainties are set forth in the Company's Annual Report on Form
10-KSB for the fiscal year ended May 31, 2008 and the Company's
Quarterly Report on Form 10-Q for the third fiscal quarter ended
February 28, 2009. The Company undertakes no obligation to publicly
release the result of any revisions to these forward-looking
statements that may be made to reflect events or circumstances
after the date hereof, or to reflect the occurrence of
unanticipated events or changes in the Company's plans or
expectations.