WORCESTER, Mass., Jan. 09, 2018 (GLOBE NEWSWIRE) -- Vystar Corporation(OTCPink:VYST) has signed a Letter of Intent (LOI) to acquire assets of NHS Holdings, LLC. (NHS), the exclusive U.S. distributor of Vystar’s Vytex® virtually allergen-, VOC- and odor-free natural rubber latex (NRL) foam. NHS was founded in January 2015 by Steve Rotman, now CEO of Vystar, and CEO of Rotman’s Furniture and Carpet, one of the U.S.’s largest independent furniture retailers. NHS identifies and brings to market innovative, sustainably sourced, eco-friendly materials and components for use in the home furnishings, apparel, and other markets. NHS was instrumental to introducing Vytex foam to manufacturers for use in mattresses, and pillows.
NHS is valued at $5 million based on the last round of funding of $750,000 for 15% equity in NHS. Vystar proposes to acquire NHS for $1.2 million in restricted stock, a discount of 85% from the valuation. NHS’s largest shareholders are major investors and registered insiders of Vystar Corp, thus subject to insider trading restrictions. The proposed acquisition is contingent upon finalization of definitive transaction agreements and approvals, which are expected to proceed quickly given the makeup of NHS and Vystar’s shareholders. NHS major shareholders include Joseph Alegra, MD, owner of Lincoln Lee Investments; Keith Osborne, MD; Lam Ngoc Minh, CEO of Lien ‘A (one of the world’s largest latex manufacturers); Bryan Stone, MD, Vystar Board member; Steve Rotman; and Greg Rotman, consultant to NHS. The Rotmans are collectively forfeiting 75% of their equity in NHS to facilitate the transaction on favorable terms for Vystar.
“One of our key strategies for Vystar growth that we recently announced was to augment product offerings, profit margins, and revenue through acquisition,” stated Steve Rotman. “NHS is the logical first acquisition, as any NHS revenues will add to Vystar’s bottom line, and it is more cost effective and operationally efficient to have Vystar’s distribution in-house, particularly since the two organizations share many of the same resources.”
Rotman continued, “We anticipate increased revenue in 2018, as Vystar expects to partner with additional manufacturers in sales of multiple products, such as solid latex mattresses, toppersand pillows; gloves; and other products, which we believe will achieve higher margins in comparison to solely licensing Vytex to manufacturers. Consumers are seeking ecofriendly, durable, and biodegradable natural products that provide a healthy experience for their loved ones in place of petroleum-based plastics and memory foams. Vytex is an ideal and cost effective material to use for products to fill this demand.”
Vytex is currently used in multiple mattress lines, including Natura™, Gold Bond®, King Koil® and Spring Air; Jeffco-manufactured components for toppers and mattresses sold to multiple manufacturers, and private label toppers and mattresses sold online. Vytex is also used in industrial adhesives, apparel padding and threads, shoes, sports equipment and electrical gloves. Vystar continues development of new Vytex formulations and is seeking additional manufacturing and development partners for numerous products including condoms, clothing, medical supplies, household products, sports equipment, shoes/sneakers, and industrial products. Contact Steve Rotman at 508-791-9114 or srotman@vytex.com.
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. 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.
