Vystar Corp (VYST)

[StocksGoneWild]

Vystar News*250 Million Share Buyback/Pays Off Debt+$7.00&$5.00+ Valuations

This is absolutely huge news for VYST as they have paid off significant debt and has authorized a 250,000,000 Share Buyback to retired such shares back to the Treasury to further reduce the Outstanding Shares (OS) way under its already existing OS of roughly 500,00,000 shares. This means that the new OS will probably be somewhere in the area of 250,000,000 shares:
Quote:

https://www.otcmarkets.com/stock/VYST/news/story?e&id=1259730
Vystar Update on Convertible Debt, Stock Buyback of Up to 250 Million Shares

WORCESTER, Mass., Jan. 15, 2019 (GLOBE NEWSWIRE) -- Vystar Corporation, (OTC Pink: VYST) a family of eco-friendly brands including Vytex® Natural Rubber Latex (NRL) and RxAir® air purification products, announced that the board has authorized a stock buyback plan of up to 250 million shares, which represents approximately half of the outstanding shares, and has paid off a $105,000 convertible note in cash to limit dilution.

"Vystar’s Board of Directors felt that the convertible debt artificially lowered Vystar’s share price and, at the current share price, it was in the best interest of all shareholders to authorize a buyback and return the shares to Vystar’s treasury,” stated Steve Rotman, CEO of Vystar. “As we enter the next phase of the company’s business plan, part of which is acquisitions earning substantial revenues, earnings per share will become a primary goal, so it behooves us reduce the number of outstanding shares."

Vystar paid off the remaining outstanding Peak One convertible note, due January 22, 2019 for $105,000 in cash on December 19th, 2019. Currently two notes with face values of $50,000 and $100,000 remain. The $50,000 note can convert no earlier than February 22, 2019. Vystar has the option to pay off that note with a substantial prepayment penalty or buy it back in the market. Vystar will determine which option is more accretive to the Company prior to February 22. The $100,000 note does not allow conversion before April 2019. It is Vystar’s intention to pay off that note given the minimal prepayment penalty. This will complete the pay off of all of Vystar’s convertible debt.

“We are closing out this debt to have a clean balance sheet for a fresh start to the new year in which we anticipate completing acquisitions that were part of our previously announced business strategy,” Rotman noted. “We look forward to sharing our progress in the coming months.”

Vytex is currently used in multiple mattress lines, including Natura™, and Gold Bond®; Jeffco manufactured components for toppers and mattresses, which are sold to multiple manufacturers; and private label toppers, pillows and mattresses sold online via sites such as Amazon and Bed Bath & Beyond. Vytex is also used in industrial adhesives, apparel padding and threads, shoes, sports equipment and electrical gloves and Vytex 3D printed fabrics available through partners like Tami Care. Liquid Vytex can be ordered wholesale through Halcyon Agri’s RCMA and CentroTrade. Vystar continues development of new Vytex formulations and is seeking additional manufacturing and development partners for numerous products. Contact Steve Rotman at 508-791-9114 or [e-mail].

Videos on Vystar and products made with Vytex are available at: https://www.vytex.com/blog/category/videos/

About Vystar Corporation:

Based in Worcester, Mass., Vystar® Corp. (OTC Pink: VYST) is the exclusive creator of Vytex Natural Rubber Latex (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, and the owner of RxAir UV light air purification 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 bringing Vytex NRL to market in adhesives, gloves, balloons, condoms, other medical devices and natural rubber latex foam mattresses, toppers, and pillows. For more information, visit www.vytex.com.

Contacts:

Media: Julie Shepherd, Accentuate PR, 847 275 3643, [e-mail]

Investors: Steven Rotman, Vystar CEO, 508-791-9114, [e-mail]

Forward-looking Statements: Investors are cautioned that certain statements contained in this document as well as some statements in periodic press releases and some oral statements of VYST officials are "Forward-Looking Statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). Forward-looking statements include statements which are predictive in nature, which depend upon or refer to future events or conditions, which include words such as "believes," "anticipates," "intends," "plans," "expects," and similar expressions. In addition, any statements concerning future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects, and possible future VYST actions, which may be provided by management, are also forward-looking statements as defined by the Act. Forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to materially differ from any future results, performance, or achievements expressed or implied by such forward-looking statements and to vary significantly from reporting period to reporting period. Although management believes that the assumptions made and expectations reflected in the forward-looking statements are reasonable, there is no assurance that the underlying assumptions will, in fact, prove to be correct or that actual future results will not be different from the expectations expressed in this report. These statements are not guarantees of future performance and VYST has no specific intention to update these statements.

v/r
Sterling



Edit 1: Key Point #2**New $7.00+ & $5.00+ Valuations

Some have recently confirmed that they have spoken to the CEO of VYST and confirmed that they now have intentions on getting VYST to the NASDAQ with meeting a minimum Bid of $4.00 per share for 30 consecutive days with ”not” a reverse split. I had not confirmed this thought by some, but after editing my valuation thoughts with the newly learned information that I will indicate below, I will show why such is very possible through logical deduction. Make sure to read the last section after the valuation thoughts. Let’s get started with this explanation.

With the acquisition of Rotmans, this was indicated in the VYST most recent 10-Q filed with the SEC under Note 12: Subsequent Events on Page 20:
Quote:

https://www.sec.gov/Archives/edgar/data/1308027/000138713118006316/vyst-10q_093018.htm



** The company informed me that they are going to acquire 100% of Rotmans.

I have seen where some had posted where Rotmans generates between $50 to $100 Million in Revenues. I was told by the company that such was not true. The company told me that Rotmans generates over $35+ million in Revenues with a 48% to 52% Gross Profit Margin and a 19% Net Profit Margin.

The company released news below that it was buying back 250,000,000 shares out of its 500,000,000 Outstanding Shares (OS) which leaves the OS to be 250 million shares:

VYST Stock Buyback of Up to 250 Million Shares & Eliminates Debt
https://www.otcmarkets.com/stock/VYST/news/story?e&id=1259730

From my conversation, the company believes that the Price to Earnings (PE) Ratio is higher than 20 for its growth rate. After doing further research, I believe they are correct. When analysts talk about the PE ratio, they commonly refer to the trailing PE which is why such is what I will use for the purpose of deriving this valuation:
https://www.investopedia.com/ask/answers/050115/what-difference-between-forward-pe-and-trailing-pe.asp

After the acquisition, it will be fair to consider that VYST will exist to trade within the Furniture Industry. Confirmed from the link below, the trailing PE Ratio for the Furniture Industry is 36.53:
http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/pedata.html

The PE Ratio is important because to get the Fundamental Valuation to consider for where VYST could exist to trade compared to the other stocks within its Industry or Sector, we must multiply the learned Earnings Per Share (EPS) by the PE Ratio for its Industry. The links below should help to better understand the PE Ratio logic as being the growth rate to help assess the fundamental valuation of a stock:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=57154170
http://www.investopedia.com/terms/p/price-earningsratio.asp

VYST has $31,319,398 listed on their Balance Sheet as an Accumulated Deficit within their last Quarterly filing below:
https://www.otcmarkets.com/filing/html?id=13070644&guid=kjy8UWUD04sjm3h

To first understand what this is and the importance of what it means, I think it is important for one to understand that "Liabilities" and "Expenses" are two different things. "Liabilities" apply to the Balance Sheet and "Expenses" apply to the Income Statement. The $31,319,398 listed on their Balance Sheet as an Accumulated Deficit is nowhere near as bad as I believe it is being perceived by some. An Accumulated Deficit is used as a Tax Shelter for tax write-offs. It's a non-issue and basically a psychological paper entry because it will only affect the Balance Sheet and not the Income Statement for valuation purposes to derive an Earning Per Share (EPS). This will have no negative effect on the outcome for what the company's EPS will be now or in the future, but instead, on the contrary.

An Accumulated Deficit greatly enhances the company’s position as a huge acquisition candidate. This is very attractive for a huge positive Revenue generating company with a significant amount of Gross & Net Income to merge into VYST via an acquisition. Therefore, Rotmans Furniture, with its over $35 Million in Revenues and while having a 48% to 52% Gross Profit Margin and a 19% Net Profit Margin is a great candidate for VYST.

This is huge because the $31,319,398 is available to be used as a 2 year carry back and 20 year carry forward Tax Net Operating Loss (NOL) to reduce the taxable income for the company’s future tax years. The company decides how they want to apply the Tax NOL. This is very important because this is what will help the company to trade to meet the minimum $4.00 per bid for 30 consecutive days to meet the NASDAQ share price requirement. VYST will only need to maximize the Tax NOL by carrying it forward for one year. That means that the $31,319,398 will all be applied to the financials of VYST for the one-year time frame to have $31,319,398 applied to its coming year profitable Income Statement after completion of the acquisition of Rotmans.

$31,319,398 = Tax NOL One Year Carry Forward

Again, I was told by the company that Rotmans generates over $35+ million in Revenues with a 48% to 52% Gross Profit Margin and a 19% Net Profit Margin. The fundamental formulas that I will use to derive the valuation for VYST are below so that all may understand:

Revenues x Gross/Net Profit Margin = Gross/Net Income
Gross/Net Income + Tax NOL = Adjusted Gross/Net Income
Adjusted Gross/Net Income ÷ Outstanding Shares (OS) = Earnings Per Share (EPS)
EPS x Price to Earnings (PE) Ratio = VYST Share Price Valuation

From these variables, we can derive the Fundamental Valuation as indicated below from two different models: Gross Profit Margin Model and the Net Profit Margin Model:

Gross Profit Margin Model
The company informed me that from their over $35 million in Revenues, they have a 48% to 52% Gross Profit Margin. I will use the 48% to remain conservative. Consider below to derive an Earnings Per Share (EPS):

$35,000,000 Revenues x .48 Gross Profit Margin = $16,800,000 Gross Income

$16,800,000 Gross Income + $31,319,398 Tax NOL = $48,119,398 Adjusted Gross Income

$48,119,398 Adjusted Gross Income ÷ 250,000,000 (OS) = .192 EPS

.192 EPS x 36.53 PE Ratio = $7.13 Per Share Gross Valuation


Net Profit Margin Model
The company informed me that from their over $35 million in Revenues, they have a 19% Net Profit Margin. Consider below to derive an Earnings Per Share (EPS):

$35,000,000 Revenues x .19 Net Profit Margin = $6,650,000 Net Income

$6,650,000 Net Income + $31,319,398 Tax NOL = $37,969,398 Adjusted Net Income

$37,969,398 Adjusted Net Income ÷ 250,000,000 (OS) = .151 EPS

.151 EPS x 36.53 PE Ratio = $5.51 Per Share Net Valuation

The company told me that FINRA will likely have them roll Rotmans’ financials up into VYST as the financials for moving forward because of how huge the acquisition would be for the VYST. This is why from the recent VYST news released, it was indicated how they are making VYST debt free in preparation for the acquisition. I was informed that they are prepared to roll 3 years worth of audited financials up into VYST to consummate the acquisition.

Read below to see that VYST is going to have yet still much more going on within the company operationally to include the Rotmans acquisition.


** The company informed me that they are going to acquire 100% of Rotmans.

** Rotmans Furniture has won Retailer of the Year three out of the last five years running.

** Currently, Rotmans is 280,000 square feet with just shy of 200 employees.
Quote:

https://www.rotmans.com/


https://www.youtube.com/user/rotmansfc

Rotmans Furniture & Carpet Store

" rel="nofollow" target="_blank">https://www.youtube.com/watch?v=

https://www.bloomberg.com/quote/VYST:US
About Vystar Corp (VYST)
Vystar Corp. creates natural rubber latex. The Company's product is used in an extensive range of products including balloons, textiles, footwear and clothing (threads), adhesives, foams, furniture, carpet, paints, coatings, protective equipment, sporting equipment, and especially health care products such as condoms, surgical and exam gloves.

Quote:

https://www.vystarcorp.com/







Quote:


https://www.vytex.com/




https://www.amazon.com/s/ref=nb_sb_ss_i_8_6?url=search-alias%3Daps&field-keywords=vytex+cloud+mattress&sprefix=vytex+%2Caps%2C160&crid=9Z4GGCJEMNW7


Vystar Vytex on New To The Street 4/30/2017
https://www.vytex.com/blog/category/videos/

" rel="nofollow" target="_blank">https://www.youtube.com/watch?time_continue=4&v=

Vystar Vytex New To The Street 3/20/2017
https://www.vytex.com/blog/category/videos/

" rel="nofollow" target="_blank">https://www.youtube.com/watch?v=

Quote:


https://www.rxair.com/







Quote:


http://www.fluidenergyconversion.com/



v/r
Sterling