KEMET Corporation Files Definitive Proxy Statement Related to Special Meeting of Stockholders
October 13, 2010
GREENVILLE, SC – October 12, 2010 – KEMET Corporation (NYSE Amex: KEM) (the Company) announced today that it has filed a definitive proxy statement (the Definitive Proxy Statement) with the Securities and Exchange Commission with respect to its previously announced special meeting of stockholders to consider the approval of a reverse stock split (the Reverse Stock Split). The special meeting will be held on November 3, 2010 at 10:00 a.m. local time at the Company’s offices at Tower 101, Suite 1700, 101 N.E. 3rd Avenue, Fort Lauderdale, FL 33301. The Company’s stockholders of record at the close of business on October 8, 2010 are entitled to vote at the special meeting or any adjournments or postponements of the special meeting. The Company will mail the Definitive Proxy Statement to stockholders beginning on or about October 12, 2010.
As stated in the Definitive Proxy Statement, the Company is proposing the Reverse Stock Split with a view to increasing the per share trading price of the Company’s common stock. Other reasons include:
- Increase in Eligible Investors. A Reverse Stock Split could allow a broader range of institutions to invest in the Company’s stock (namely, funds that are prohibited from buying stocks with a price below a certain threshold), potentially increasing trading volume and liquidity of the Company’s common stock.
- Increased Analyst and Broker Interest. A Reverse Stock Split could increase analyst and broker interest in the Company’s stock as their policies can discourage or prohibit them from following or recommending companies with low stock prices.
- Listing on the New York Stock Exchange. By potentially increasing the Company’s stock price, the Reverse Stock Split may allow the Company’s common stock to be listed on the New York Stock Exchange (NYSE) which requires, among other things, that issuers have a $4.00 per share stock price at the time of listing and maintain an average closing bid price of at least $1.00 per share over a 30 trading-day period. Moving the Company’s listing to the NYSE could improve the liquidity of its common stock and the Company’s ability to raise capital in the future through the sale of its common stock.
Other information concerning the proposed Reverse Stock Split, including a description of the potential effects of the Reverse Stock Split, are set forth in the Definitive Proxy Statement.
About KEMET
The Company’s common stock is listed on the NYSE Amex under the ticker symbol KEM (NYSE Amex: KEM). At the Investor Relations section of our web site at http://www.KEMET.com/IR, users may subscribe to KEMET news releases and find additional information about our Company. KEMET applies world class service and quality to deliver industry leading, high performance capacitance solutions to its customers around the world and offers the world’s most complete line of surface mount and through hole capacitor technologies across tantalum, ceramic, film, aluminum, electrolytic, and paper dielectrics. Additional information about KEMET can be found at http://www.kemet.com.
