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Re: earlylight post# 375535

Saturday, 02/16/2019 5:11:30 PM

Saturday, February 16, 2019 5:11:30 PM

Post# of 376163
VYST 5 Significant Key Points to Summarize NASDAQ Objectives 

Huge VYST News*250 Million Share Buyback/Pays Off Debt 
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=146108243 ;

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=146049818 ;
Key Point #1**No Reverse Split 

I reached out to the company and confirmed that there is no reverse split. I was informed by the company that the only way that VYSTwould do a reverse split would be if they needed to do a small one to meet NASDAQrequirements which was why such was given an honorable mention within their last 10-Q: 
https://www.otcmarkets.com/filing/html?id=13070644&guid=kjy8UWUD04sjm3h ;

I was also informed that if such is the case, VYST would announce a no higher than a 1-10 reverse split at the same time of announcing their application submission to trade on the NASDAQ. If such was to happen, it would be after their upcoming closing of their acquisition of Rotmans that was listed within their last 10-Q under Note 12 Subsequent Events which would immediately make them a NASDAQcompany because of the Revenues and Profits that they are generating: 
https://www.otcmarkets.com/filing/html?id=13070644&guid=kjy8UWUD04sjm3h ;

The company totally understands that a reverse split is not good for the market and would never do such unless VYSTneeded to meet the NASDAQ requirement of having a minimum $4.00 Bid. Based on the logic from my conversation and the ratio of no higher than a 1-10, they plan to see VYSTtrading at .50+ per share before such is needed to graduate the company to the NASDAQ or a reverse split would never happen. The company also told me that there will be a share buyback in the near future. 

To reiterate… The company informed me that they are going to qualify for NASDAQ with their Revenue and that if they ever did a reverse split, they would be filing for the NASDAQ and a small 1-10 reverse split on the same day. 

v/r 
Sterling 

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=146050256 ;
Key Point #2**The Immediate .67+ & .26+ Valuations 

I have seen where some had posted where Rotmansgenerates between $50 to $100 Millionin 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 informed me that all the conversions have been completed and that the Outstanding Shares (OS) should be somewhere below 500 million shares. From my conversation, the company believes that the Price to Earnings (PE) Ratiois higher than 20 for its growth rate, but I will use 20 to remain conservative. 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 Net Profit Margin = $16,800,000 Net Income 

$16,800,000 Gross Income ÷ 500,000,000 (OS) = .0336 EPS 

.0336 EPS x 20 PE Ratio = .672 Per Share Gross Value 


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 ÷ 500,000,000 (OS) = .0133 EPS 

.0133 EPS x 20 PE Ratio = .266 Per Share Net Value 

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. 

v/r 
Sterling 

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=146062058 ;
Key Point #3**VYST $1.5M Debt Paid & Acquisition Payment

This is huge in my opinion and shows that the company is serious about moving forward with their goals. Also, important to note, I was informed that the Rotmans Furniture store acquisition price is $4 million that will be bought with cashand stock that only converts post reverse split price. The stock component just can’t convert unless it’s post-reverse. This means that the acquisition will be a lot less dilutive. They wanted to be overly fair, especially since the Insiders own over 75% of the Outstanding Shares (OS). 

Within the PR below, pay close attention to where it says... CMA Investments, LLC and its guarantors accepted15M shares ofrestricted Vystar common stock as payment for theprincipal and intereston the decade-old loan. 

This is a huge show of confidence that leads me to think that they believe that such 15 Million shares are considered at a discount to where they still would make money off of their shares for knowing what is coming. Think about it... 

$1,500,000 Debt ÷ 15,000,000 Restricted Shares = .10 Per Share 

This means that they were willing to accept 15,000,000of VYST Restricted Shares at .10 per share to pay off $1.5 Million in Debt. Maybe it's me, but this leads me to believe that whatever they learned to accept such a payoff in VYST Restricted Shares, is going to take the price far higher than .10 per share. Read the PR below: 

Quote:
https://seekingalpha.com/news/3370252-vystar-pays-long-term-debt-1_5m ;
Vystar pays off long-term debt of $1.5M 

Jul. 16, 2018 9:02 AM ET|About: Vystar Corp. (VYST)|By: Niloofer Shaikh, SA News Editor 
Vystar Corporation (OTCPK:VYST) haspaid off $1.5 M in long-term debt, for a total reduction in long-term debt of$2.6M this year. 

CMA Investments, LLC and its guarantors accepted 15M shares of restricted Vystar common stock as payment for the principal and interest on the decade-old loan. 

Stated Steve Rotman, CEO of Vystar, “Vystar isnow totally free of long-term debt and liens. This helps clean up our balance sheet and enables a fresh start as we execute our strategic plan that includes further acquisitions, expanding the Vytex distribution network, development of new Vytex formulations, and development and launch of new product lines.” 


v/r 
Sterling 

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=146094320 ;
Key Point #4**VYST Key Ownership Confirmation via Form 4s 

After speaking to the company, I learned that Insiders own over 75% of the company. I was told that in the ten years since the Inside ownership has been owning their shares, there has been not one sell. I was told that this can be confirmed via the hundreds of Form 4sfiled with the SEC as some of them are very prominent people of which are on the Board for the company. I counted over 280 ownership forms filed, but I won’t go through them all as I will try to only highlight a few key prominent VYST personnel and Board Members. Even though some might not be Board Members anymore, they still are shareholders and provide major input for their investment into VYST and still have a vested interest in their success: 

(Sort by the “100 Entries” tab) 
https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001308027&type=&dateb=&owner=only&start=100&count=100 ;

Quote:

Doug Craft 

CEO of and ownsMedicraft, Inc.who is the largest supplier toMedtronic in the world. Medtronicis a $113.9 Billioncompany that trades on theNYSE at $84.00+ per share: 
https://finance.yahoo.com/quote/MDT/key-statistics?p=MDT ;

https://www.medtronic.com/us-en/index.html ;


http://www.medicraft.com/ ;
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