TULSA, Oklahoma, June 29, 2005 - Webco Industries, Inc. (OTC: WEBO) today announced that its stockholders approved an amendment to the Company's certificate of incorporation that will effect a reverse split and then forward split to the Company's common stock. The Company's common stock will continue to be quoted on the Pink Sheets; however the ticker symbol will change to WEBC as a result of the reverse split. Quotation under the new symbol is expected to commence on Monday morning, August 1, 2005.
The proposal approved by the stockholders provides for a one-for-100 reverse stock split, immediately followed by a 10-for-one forward stock split (having the net effect of a one-for 10 reverse split). Stockholders owning fractional shares after the reverse split will receive a cash payment in the amount of $7.50 per pre-reverse split share in lieu of a fractional share. The amendment to the certificate of incorporation does not change the number of the company's authorized shares of common stock or the par value of the company's common stock. Each stockholder of record at the close of business on July 29, 2005, will receive the post-forward-split shares and/or a payment for any post-reverse-split fractional shares.
In the meeting, stockholders also re-elected Messrs. Jack McCarthy and Ken Case to the Board of Directors to terms that end December 2007.
Webco is a manufacturer and value added distributor of high-quality carbon steel, stainless steel and other metal tubular products designed to industry and customer specifications. Webco's tubing products consist primarily of pressure tubing and specialty tubing for use in durable and capital goods including heat exchangers, boilers, automobiles and trucks and home appliances. Webco's long-term strategy involves the pursuit of niche markets within the metal tubing industry through the deployment of leading-edge manufacturing and information technology. Webco has three production facilities in Oklahoma and Pennsylvania and five value-added distribution facilities in Oklahoma, Texas, Illinois, and Michigan, serving more than 1,000 customers throughout North America.
Forward-looking statements: Certain statements in this release, including, but not limited to, those preceded by or predicated upon the words "anticipates", "appears", "believes", "expects", "hopes", "plans", "should", "would", or similar words constitute "forward-looking statements". Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Company, or industry results, to differ materially from any future results, performance or achievements expressed or implied herein. Such risks, uncertainties and factors include, among others: general economic and business conditions, competition from imports, changes in manufacturing technology, banking environment, monetary policy, raw material costs and availability, industry capacity, domestic competition, loss of significant customers and customer work stoppages, customer claims, technical and data processing capabilities, and insurance costs and availability. The Company assumes no obligation to update publicly such forward-looking statements, whether as a result of new information, future events or otherwise.
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