Vystar Board Approves Natural Rubber Latex Business Spinoff
Shareholder Meeting to Feature Strategic Partner Collaborations
ATLANTA, GA--(Marketwired - Sep 12, 2014) - Vystar® Corporation's (OTCBB: VYST) ("Vystar"), Board of Directors has authorized management to pursue the spinoff of its Vytex® natural rubber latex business into a separate publicly-traded entity initially concentrating on the foam markets (mattresses, pillows and mattress toppers), while the parent will continue to focus on growing the sleep health and wellness market. Each entity would have its own management team and Board of Directors. Vystar is the exclusive creator of Vytex Natural Rubber Latex (NRL), a multi-patented, all-natural raw material that contains significantly reduced levels of non-rubber particles and proteins found in natural rubber latex.
It is anticipated that the transaction would be structured as a pro rata distribution to all shareholders of Vystar with the holders of its common stock receiving additional common stock in the Vytex distribution. Upon closing of the proposed spinoff transaction, Vystar's existing shareholders would hold interests in both Vystar and Vytex. Details on the structure, management, governance, and other significant matters related to the spinoff are still in development.
"We believe this transaction will unlock the value hidden within each of the two entities to achieve strategic and operational clarity and growth," said William Doyle, Vystar CEO. "The parent will have its unique flagship sleep health business with additional wellness offerings planned. The proposed spinoff will free the Vytex Division to focus on aggressively marketing Vytex's NRL raw material, launching its Vytex NRL foam business, and conducting the research and strategy planning to enter the apparel markets."
Vystar will hold its Annual Shareholder Meeting on Monday, September 15, 2014 at 2:00 PM Eastern at the Atlanta offices of Greenberg Traurig for shareholders of record.
"For the first time, we will be introducing to shareholders extensive details of our collaborative efforts with our strategic partners, including foam producers, mattress manufacturers, retail furniture stores and Internet specialists," stated Doyle. "We believe the presentations by several of our partners will provide insight into the value and opportunities each partner brings that will ultimately increase shareholder value."
Meeting results and select presentations will be available by the end of business on Sept. 17, 2014 at www.vytex.com. Company filings with the US Securities & Exchange Commission are available on www.sec.gov.
About Vystar Corporation
Based in Atlanta, GA, Vystar® Corporation (OTCBB: VYST) is the exclusive creator of Vytex Natural Rubber Latex (Vytex NRL), a multi-patented, all-natural, raw material that contains significantly reduced levels of the proteins found in natural rubber latex and can be used in over 40,000 products. Vytex NRL is a 100% renewable resource, environmentally safe, "green" and fully biodegradable. Vystar is working with manufacturers across a broad range of consumer and medical products to bring Vytex NRL to market in adhesives, balloons, surgical and exam gloves, other medical devices and natural rubber latex foam mattresses and pillows. Vystar's Kiron Sleep Lab LLC acquisition provides an entry into the health and wellness market. For more information, visit www.vytex.com.
Notice Regarding Forward-Looking Statements
This news release contains "forward-looking statements" as that term is defined in Section 27A of the United States Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs and results of new business opportunities. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects and development stage companies. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K for the most recent fiscal year, our quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission. Executing the transaction requires further work on structure, management, governance, and other significant matters. Within the next number of months, Vystar's and Vytex's management will develop detailed plans for the Board's further consideration and final approval.
The completion of the spin-off is subject to a number of conditions, including final approval of the transaction by each Board, favorable tax rulings and or opinions of the transaction to Vystar and to its shareholders, further due diligence as appropriate, and the filing and effectiveness of appropriate filings with the Securities and Exchange Commission ("SEC"). There can be no assurances given that the separation of Vystar's business as described in this announcement will occur. Vystar will provide interim updates as appropriate.
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