Gediminas Jasionis

SpongeTech Delivery Systems, Inc. (PINK:SPNG.PK) Still Getting Nowhere

by Gediminas Jasionis March 8, 2010

Behind the SPNG stock

SpongeTech Delivery Systems, Inc. (PINK:SPNG.PK)  is one stock people will always have something to say about, even if the company is lacking elemental IR here and there. The people behind the wheel really try to throw some bones for the hungry investors but updates are still insufficient at the moment.

The latest news we have states that the company is doing everything to get filed with the SEC. It could have an enormous market reaction, even if they have nothing to show on their financials. The thing is just so hyped that everyone's waiting for even the smallest twitches to be seen.

The so called developments

Everyone knows the SEC is investigating the company. They have a "spammer" tag attached to them and it's doubtful if they can be found totally innocent. As much as we would like to hear more about that, the SEC's policy would probably not allow any disclosures. The best we can get is that the company has changed their law firm, which is not much of the development really.

More interestingly, they've recently sold 6.6 million shares for $268.8 thousand to Pike Capital Partners LP, which is registered as a beneficial owner. The money will probably sit in the pockets of their new lawyers if they manage to get the company out of trouble.

According to their PR, the business is going and people are buying their sponges, they had even given distribution rights to three companies more than half a year ago. Though they didn't bother to announce that, until Feb 2010.

So there's nothing bright new in their announcements, mostly just something they had forgot to tell us when it happened. As for the future, we will see. I like the effort they put into getting back on track with the filings and all, but if they had serious cash flow, they would have long ago done that, the right way.

Here's an easy watch, while we wait for those financials:

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