FOAM Foamasters

 

TIDMFOAM 
 
RNS Number : 4072O 
FoaMasters International Limited 
06 March 2009 
 

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| For Immediate Release              |                           6 March 2009 | 
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FoaMasters International Limited 
 
 
Proposed Buyback of Shares & Cancellation of Admission to AIM 
 
 
FoaMasters International Limited (AIM: FOAM) ("FoaMasters" or the "Company"), 
today announces that following a period of consultation with its advisers, the 
Board of FoaMasters has concluded that it would be in the Company's best 
interests for it to cancel the admission of the Company's shares to trading on 
AIM ("Cancellation") and to offer existing shareholders the opportunity to sell 
their shares back to the Company. The Cancellation and the share buy back 
contract will be subject to shareholder approval. The provisions of the UK 
Takeover Code do not apply to the Company. 
 
 
This decision has been reached due to the continued challenging trading 
environment brought about, in the first instance, by the rise in costs of raw 
materials in the early part of 2008 which led to a material decrease in margin, 
followed by a significant drop in demand for foam products as the global 
recession impacted both the international and local markets in which FoaMasters 
operates. 
 
 
In addition, since the Company's admission to AIM in December 2007, the quoted 
share price on AIM has fallen substantially due to poor trading results and a 
lack of liquidity in the shares. In view of the prevailing market conditions, 
the Company has no current intention of raising new funds through the placing of 
shares and the Directors do not anticipate that the liquidity of the shares will 
improve in the short to medium term. 
 
 
For the reasons set out above the Directors believe that the costs of 
maintaining an AIM quotation outweigh the benefits conferred on the Company. 
 
 
The share buy back, subject to shareholder approval, will be conducted at a 
price of 23 pence per share. 
 
 
A circular containing the background to the proposed Cancellation and the 
details of the proposed share buyback has been sent to the holders of ordinary 
shares ("Shareholders") today and will be made available on the Company's 
website, www.foamasters.com 
 
 
 
 
Under the AIM Rules, it is a requirement that any company seeking to cancel its 
admission to AIM must be seek shareholder approval, comprising not less than 75 
per cent. of the votes cast by shareholders (whether present in person or by 
Form of Proxy) in a general meeting. 
 
 
An Extraordinary General Meeting ("EGM") has been convened for 5pm (PRC time) / 
9am (UK time) on 20 March 2009 at Foamtech Polyurethane Foam Manufactory, 
Liangbian Industrial Estate, Liaobu Village, Dongguan, Guangdong, People's 
Republic of China to approve the Cancellation and share buyback. If the 
resolutions are approved, it is expected that the cancellation of dealings in 
the Company's shares on AIM will take effect from 8.00 a.m on 7 April 2009. 
 
 
For further information please contact: 
 
 
+-------------------------------------------+----------------------------------+ 
| FoaMasters International Limited          |                   +852 2887 7361 | 
| Jack Cheong, Chief Executive Officer      |                                  | 
| Richard Cheong, Deputy Chief Executive    |                                  | 
| Officer                                   |                                  | 
| Teh Kim Seng, Non-executive Chairman      |                                  | 
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| Hanson Westhouse Limited                  |                 +44 20 7601 6100 | 
+-------------------------------------------+----------------------------------+ 
| Tim Metcalfe                              |                                  | 
| Martin Davison                            |                                  | 
+-------------------------------------------+----------------------------------+ 
| Buchanan Communications                   |                 +44 20 7466 5000 | 
+-------------------------------------------+----------------------------------+ 
| Ben Willey                                |                                  | 
| Jennie Spivey                             |                                  | 
+-------------------------------------------+----------------------------------+ 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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