Vystar Corporation (VYST) Rumor of RXAIR Spin Off to Tongdy Control Technology Ltd.
Based in Worcester, Mass., Vystar® Corp. (OTC Pink: VYST) is a diversified company claiming to be the exclusive creator of Vytex Natural Rubber Latex (NRL) which can be used in over 40,000 products as well as the owner of RxAir UV light air purification products. RxAir is an air purification system used in hospitals, waiting rooms and classrooms. In fact, it’s used in 400 hospitals as an FDA approved class 2 medical device. RxAir has demonstrated to be effective to disinfect air and inactivate a number of pathogens including MERS and SARS using patented UV light air purification technologies.
The Spin Off
Back in October the Board of Directors approved a plan to spin-off part of its RxAir purification business as a separate independent publicly traded company, with designs of being operational in early 2020. The boards plan as detailed in a Biospace article at the time is as follows:
Create a publicly traded subsidiary called RxAir, Inc. encompassing the UV400 air purifier product and related intellectual property (IP), tooling, websites and other assets, which will focus on the growth opportunities in the growing residential, healthcare and commercial markets.
Contract with an outside entity which will control 51% interest in RxAir, Inc., with an investment of $3-$5 million in production, tooling, inventory, and operations needed to run RxAir.
Award 39.1% of the RxAir shares as a pro-rata dividend to Vystar shareholders as of the designated record date.
Retain 9.99% of RxAir shares for Vystar Corporation and retain all other currently held assets.
Vystar stated they were currently entertaining offers and in serious negotiations with a qualified healthcare group in manufacturing, and marketing for business-to-business (B2B) and business-to-consumer (B2C) products.
“We anticipate that this strategic initiative will enhance value for shareholders and attract new shareholders who will buy Vystar shares to reap the dividend. Investors generally appreciate an unexpected dividend bonus,” stated Steve Rotman, CEO of Vystar.
The valuation at the time was an anticipated market capitalization of $10 million based on capital, assets and market track record. Of course that was pre covid-19 and to say the valuation could go hyperbolic is an understatement If indeed UV light can inactivate the virus.
In recent days CEO Steve Rotman has made it be known Vystar is close to ramping up production of the Rx3000 , “We are now producing 50 units per week. Once we finish testing these units, we plan to ramp up to 1500 units.” This of course got every ones attention and resulted in a big share price move of 127% May 7.
Now here is where things get intriguing........
Tongdy Control Technology Ltd. Founded in 1999,in Beijing , Tongdy Control Technology is an industry leader which designs and manufactures high quality IAQ products and HVAC controllers . As an advanced technology company, Tongdy heavily invests in R&D in IAQ and HVAC products and solutions. Tongdys products have been resold and used in European markets, North and South American markets, Gulf areas, Australia, New Zealand and Southeast Asia . Tongdy has over 15 patents for invention, utility model and exterior design and more than 15 software copyrights. Clients include Price Waterhouse Coopers, Microsoft, Huawei and other international companies. Reported annual revenues are between $40 mil-$50 mil globally.
Enter the third party.....
Bossart Environmental Technologies Bossart Environmental Technologies is a Sales Agent for European and American environmental equipment and technology manufacturers looking to enter the Chinese market. Senior executive Jim Mahoney leads a strong international market-entry operation with management and business development records to match. According to an executive with Bossart , their client Tongdy is very interested in expanding its operations into UV air purification technologies in both China and U.S. markets and Vystar is front and center on their short list.of possible business partners. Tongdy, with its global distribution network, large scale manufacturing and sales capabilities could be very lucrative for Vysta With UV light technology demand at an all time high with global exponential growth expected due to covid-19 , it goes without saying Vytex and its investors could finally see the light at the end of the tunnel.
We will be following closely and will update this space as developments occur.
Disclosure: we hold no position in VYST either long or short and we have not been compensated for this article.
