$VYST 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 srotman@vytex.com.
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