Flare-up.

Shares of Sun Valley-based Flamemaster Corp. surged as much as 122 percent on Dec. 15 after the company set plans for a 7-1 stock split to avoid being delisted by the Nasdaq SmallCap Market.

Flamemaster Chief Executive Joseph Mazin said the stock split will boost the public float to 500,000 shares, the minimum necessary to maintain its stock listing. The company plans to use the additional stock in its previously announced merger with Best Candy & Tobacco Co., a Phoenix-based distributor to convenience stores and casinos.

Flamemaster, a maker of sealants and protective coatings, will be spun off as a private company and Best Candy will take its public listing, Mazin said.

Flamemaster filed with securities regulators in October to delist its stock, citing the financial and management burdens of complying with Sarbanes-Oxley requirements. But by November, the potential deal to acquire Best Candy prompted Flamemaster to appeal its own delisting.

In the deal, Best Candy, with $55 million in sales, would end up with 90 percent of the merged company's stock. Mazin said Best Candy would be able to use its shares for acquisitions. Best Candy executives did not return calls.

Flamemaster closed at $55.50 on Dec. 15, a gain for the day of $22.50 per share. Earlier, the shares had reached as high as $69.60 each.