SpongeTech(R) Announces Changes in Capital Structure; Corporate Buy-Back is Almost Completed
NEW YORK, Nov. 20 /PRNewswire-FirstCall/ -- SpongeTech(R) Delivery Systems, Inc., America's Cleaning Company(TM), (OTC Bulletin Board: SPNG), CEO Michael Metter reported today that the Corporate buy-back of the Company's common shares is almost completed. Repurchased stock will soon be returned to treasury and removed from the trading float. The Board of Directors has convened a meeting to discuss additional positive measures to reduce the total outstanding shares in SpongeTech's(R) stock. Possible actions being contemplated by the Company are to exercise the repurchase option that the Company has on the 660 million shares currently held by RM Enterprises. The repurchase of equity would significantly reduce the outstanding number of shares of the Company stock thereby decreasing the Company's overall market cap. Additionally, the Board of Directors will be discussing the feasibility of a new corporate stock buy-back program.
Michael Metter, CEO of SpongeTech(R) comments, "The management team feels that these mechanical steps to reduce the outstanding number of shares will be a positive step in changing the current trading pattern of our stock."
COO, Steven Moskowitz adds, "The management is committed and prepared to support any and all permissible actions to maintain the fundamental value of our common stock."
For more information, please contact Investor Relations at 1-877- SPONGE-T, and/or visit the Company's website at: www.spongetech.com
About SpongeTech(R) Delivery Systems, Inc.
SpongeTech(R) Delivery Systems is a company, which designs, produces, and markets a unique line of reusable cleaning products for household use. These sponge-based products utilize SpongeTech(R)'s proprietary, patent (and patent-pending) technologies involving hydrophilic (liquid absorbing) foam and polyurethane matrices. The Company's sponges are specially configured with an outer contact layer and an inner matrix, the latter of which comes pre-loaded with specially formulated soaps and wax that are released when the sponge is wetted and applied to a surface with minimal pressure. The Company's current product line is designed for Car Care and Pet Care, however, SpongeTech(R) is currently exploring additional applications for its technology including an anti-bacterial, kitchen and bath cleaner, as well as a unique 'foaming' bath sponge for children.
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