SpongeTech® Delivery Systems, Inc. (“SpongeTech”) “The Smarter Sponge™”, (OTCBB: SPNGE), today announced that the Company has filed a lawsuit in the United States District Court for the Southern District of New York against GetFugu, Inc. (OTCBB: GFGU). The complaint alleges a breach of contract, breach of fiduciary duty, common law fraud, conversion, willful misconduct and unlawful appropriation of funds by GetFugu and that SpongeTech is seeking to recover funds which were delivered to GetFugu. An aggregate of $1,750,000 had been advanced to GetFugu in anticipation of the entry into a definitive investment agreement.
On September 8, 2009, SpongeTech had announced that it was going to invest $4 million into GetFugu’s mobile-based web search and e-commerce technology, and that SpongeTech would be the first company to utilize GetFugu’s innovative mobile search platform.
On September 24, 2009, SpongeTech announced the rescission of investment plans in GetFugu and that GetFugu had advised the Company that it currently did not have the funds to repay the $1,750,000 and that it was seeking alternative financing sources to fund a reimbursement.
About SpongeTech® Delivery Systems, Inc.
SpongeTech® Delivery Systems is a company which 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.
Contacts:
SpongeTech® Delivery Systems, Inc.
Investor Relations:
Bill
Young, 877-218-8393
wayoung55@aol.com
or info@spongetech.com
