Corporate Update for Flame Seal Products, Inc.

Rhea-AI Summary

Flame Seal Products (FSP) filed for voluntary bankruptcy in 2020 due to the Covid-19 pandemic, which significantly impacted its operations. During the proceedings, Flame Seal, LLC became the debtor-in-possession, acquiring FSP's principal assets and providing necessary operating capital. FSP downsized its workforce and relocated to a smaller facility. The company retains the FLMP shell with $12.8 million in net operating losses (NOL) for potential sale to a private firm, aiming for a reverse merger to benefit shareholders.

Positive

• FSP retains a shell with $12.8 million in net operating losses (NOL) for future tax offset.
• Potential for reverse merger with a private operating company to generate shareholder value.

Negative

• FSP is no longer a publicly traded company under the symbol FLMP.
• Significant operational challenges and losses experienced due to the pandemic.

HOUSTON, TX / ACCESSWIRE / October 5, 2021 / In 2020, Flame Seal Products, Inc. (FSP) entered voluntary bankruptcy proceedings after the Covid Pandemic shut down the majority of its business. FSP had limited capital to sustain operations for more than several months. Its principal creditor and largest shareholder, Flame Seal, LLC (a private limited liability corporation) became debtor-in-possession during the proceedings and, having acquired FSP's principal business and intellectual property assets, provided FSP operating capital to continue supplying products to existing customers as they slowly emerge from the Pandemic.

FSP's chief executive officer (CEO) Craig Keyser has overseen this difficult transition as FSP downsized to minimum personnel to operate and move to a smaller and less expensive facility at 9420 Knight Road, Texas 77045 from 15200 West Drive, Houston, Texas 77053.

Craig Keyser states, "This has been a tremendously difficult eighteen months for all of us at Flame Seal Products, including those stockholders who had invested in the Company. All of our stakeholders have suffered losses. The effect of the pandemic on our business provided us no opportunity to continue ongoing operations and led us to filing for bankruptcy protection. We were able to retain the FLMP shell with the existing NOL in an effort to provide some value to our shareholder through the sale of these assets. We sincerely appreciate the long-term support of all of our Shareholders".

FSP is no longer a publicly held company trading under the symbol FLMP - Pink Sheets, Limited Information (trading may continue until fiduciaries liquidate closing common stock positions). Existing common shareholders still own the remaining FLMP shell which has $12.8 million in net operating losses (NOL). Flame Seal LLC will endeavor to negotiate a sale to a private operating company seeking to become public (known as a reverse merger) and to utilize the NOL to offset their taxable profits. Any net proceeds from this event will be distributed to FLMP shareholders.

Contact Information:

Richard Kaneb
richardkaneb@gmail.com
Mobile: 949-233-3229

SOURCE: Flame Seal Products, Inc.

View source version on accesswire.com:
https://www.accesswire.com/666758/Corporate-Update-for-Flame-Seal-Products-Inc

FAQ

What happened to Flame Seal Products (FLMP) during the pandemic?

Flame Seal Products entered voluntary bankruptcy in 2020 due to significant operational disruptions caused by the Covid-19 pandemic.

What is the current status of Flame Seal Products under ticker FLMP?

As of now, Flame Seal Products is no longer publicly traded under the symbol FLMP, as it is undergoing liquidation processes.

What assets does Flame Seal Products retain after bankruptcy?

Flame Seal Products retains the FLMP shell and $12.8 million in net operating losses (NOL) for potential tax benefits.

What is the future plan for Flame Seal Products (FLMP)?

Flame Seal LLC plans to negotiate a sale to a private operating company seeking a reverse merger, which could benefit existing shareholders.