Products Research Buys 22.9% Stake in Flamemaster
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Products Research & Chemical in Glendale bought a 22.9% stake in Flamemaster Corp. as part of a previously announced licensing agreement.
Both PRC and Sun Valley-based Flamemaster make coatings, sealants and other specialty chemicals. Last month, PRC granted a 15-year license to Flamemaster’s Chem Seal division in exchange for Flamemaster stock, future royalties and certain marketing rights to Flamemaster products.
Flamemaster issued 349,321 of its common shares to PRC, and the Glendale company bought an additional 80,000 shares from Flamemaster for $480,000, giving it 429,321 of Flamemaster’s total 1.87 million common shares outstanding, according to a filing with the Securities and Exchange Commission.
PRC has said it views its Flamemaster stake as an investment and has no plans to seek control of the company.
The companies’ agreement also calls for Flamemaster to produce and sell various PRC aerospace sealants in North America. PRC, in turn, will be the exclusive distributor of Chem Seal products outside North America.
Separately, Flamemaster declared its first cash dividend, two cents, payable April 1 to stockholders of record March 10.
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