SUN VALLEY, Calif., Dec. 14, 2004 (PRIMEZONE) -- Flamemaster Corporation (Nasdaq:FAME) announced today that its Board of Directors authorized a seven for one forward stock split in order to comply with the minimum 500,000 publicly held share requirement for continued listing on the Nasdaq SmallCap Market. The stock split will be effective on January 7, 2005 to shareholders of record December 23, 2004. The forward split was authorized pending a favorable ruling by Nasdaq to maintain the Company's listing.
The Company recently announced a proposed transaction with Best Candy & Tobacco Co. (The "Best Group"). After the Company's Board authorized and the Company declared a one for ten reverse stock split, the opportunity arose for the Flamemaster shareholders to receive an added benefit by entering into a merger agreement with the Best Group.
Flamemaster's management believes that the merger with the Best Group, if completed, would be beneficial to Flamemaster's shareholders. There can be no assurance that the merger with the Best Group will be completed. Nor can management assess the length of time it will take to close the transaction.
The release herein may contain or identify a forward-looking statement. These statements are based on a number of assumptions and estimates, which are inherently subject to uncertainty and contingencies, many of which are beyond the control of the Company and reflect future business decisions, which are subject to change.