LINWOOD, Pa. (March 9) — Foamex International Inc. plans a one-for-four reverse stock split after a majority of the company's common stock shareholders approved amendments to the firm's charter allowing such action.
Raymond Mabus, Foamex chairman and CEO said the action should create more liquidity, increase awareness of Foamex's shares among potential investors and enhance the company's value for all stockholders.
The producer of polyurethane foam-based products said it will file an information statement with the Securities and Exchange Commission describing the reverse stock split and amendment regarding the removal of trading restrictions. The information also will be mailed to shareholders of record as of March 6.
The reverse split will become effective 20 days after the mailing of the information statement, according to Foamex. Once the split is implemented, the firm's common stock will continue to trade on the OTC Bulletin Board on a split-adjusted basis, under the current stock symbol FMXI.