Angular-momentum coupling and density-matrix techniques are used to st
udy the formation of para- and orthopositronium in rearrangement colli
sions involving a slow polarized positron beam and a molecular oxygen
target. Spin scattering matrices are obtained by ensuring spin conserv
ation in the interaction region, and spin density matrices for the inc
oming positron-oxygen system are constructed to include an angular dep
endence between the spin-quantization axes of the two incoming beams.
The ratios of para- to ortho-positronium formation are given for the s
cattering process O-2 + e(+) --> O-2(+) + Ps for an unpolarized as wel
l as a polarized oxygen target. The variation from the statistical Val
ue of 1/3 is predicted in both cases. Experimental verification should
be possible with modest upgrading of existing positron beam facilitie
s.