Vystar Corp (VYST)

[frobnicator rex]

info is scant, and I don't speak lawyer too well, but my summarized understanding is this:

Pre Rotmans-led VYST took on several high yield convertible bonds with stiff prepayment penalties, 12% interest. Steve has been paying them off, and the last of which was supposed to convert towards the end of Feb. The company elected to prepay the note in cash instead of letting it convert to shares. May be rumor but apparently EMA (the lender) refused to return calls by VYST in the weeks leading up to that conversion date.

EMA then had a TA convert 50 million shares claiming it was what they were owed because the note had not been paid off. Apparently they claimed the interest portion hadn't been paid, whereas VYST claims the opposite. Hopefully someone else can flesh that out a bit more.

Point is, it should be fairly trivial to resolve.. a simple reading of the original terms and review of transaction records should be enough to show who did what.

And if the Rotmans are to be believed, EMA is going to be in a world of hurt soon, and will be liable at least to 'repay' the 50 million shares they illegally converted.

I happen to speculatively believe that this accounts for a lot of the seeming selling pressure we're seeing (say that seven times smooth)... in other words, EMA knows they're gonna be on the hook for 50 million shares, and so they're selling those illegitimate shares to try and drive the price lower, so they can buy the legitimate shares they'll need as cheaply as possible.

I have no idea if that last part is actually happening, but if it is, I sure hope VYST countersues EMA for SEC fraud.