Foamex Reveals Date for 1-for-4 Reverse Split
As previously announced, the one-for-four reverse stock split was approved by the Board of Directors of the Company and a majority of holders of the Company's common stock.
As a result of the reverse stock split, every four shares of the Company's common stock will be combined into one share of common stock. Fractional shares will be aggregated and sold by the Company's exchange agent and the resulting cash will be paid in lieu of the fractional shares equal to their pro rata share of total net proceeds of these sales. Stockholders will not be entitled to receive interest for the period of time between the effective date of the reverse stock split and the date the stockholder receives any cash payment. All of the Company's common stock, stock options and other convertible securities that are outstanding immediately prior to the reverse stock split will be proportionately adjusted.
The Company has received a new CUSIP identification number (344123 203) for its post-reverse stock split common stock. Foamex has retained its transfer agent, Mellon Investor Services LLC, to serve as its exchange agent and to manage the exchange of older, pre-reverse stock split certificates. Stockholders of record at the close of business on April 30, 2007 will be furnished with instructions for exchanging their stock certificates for new stock certificates. Stockholders with shares held in street name with a brokerage firm will have their accounts adjusted by their respective brokers. Stockholders should not destroy any stock certificates and should not submit any certificates to the Company's transfer agent until requested to do so.