Vystar is acquiring NHS as part of its strategy to move into direct product offerings and manufacturing partnerships for products made from Vytex® latex, such as bedding toppers, mattresses, pillows, upholstery to be sold through multiple channels. Vystar
WORCESTER, Mass., April 23, 2018 (GLOBE NEWSWIRE) -- Vystar Corporation (OTCPink: VYST) has acquired the assets of NHS Holdings, LLC (NHS) executing on the first part of the company’s vision to move into direct product offerings made from Vytex latex. NHS was the exclusive U.S. distributor of Vystar’s Vytex® natural rubber latex foam to manufacturers for use in over 200 home furnishings products, including mattresses, toppers, pillows and upholstery, sold through multiple channels. This acquisition provides Vystar with roll packing and cutting equipment to support our bedding manufacturing partners, while lowering the cost of Vytex to the manufacturer by eliminating the middleman.
“Now unified under the Vytex brand, we anticipate developing additional product offerings and solidifying partnerships with multiple major manufacturing partners throughout the home furnishings industry,” stated Steven Rotman, Vystar CEO and NHS Founder. “We anticipate our new offerings will include cushions and padding for use in seating and other products which we believe will achieve higher margins.”
NHS was a highly accretive related party transaction for Vystar. It closed at a 70% discount to NHS’s valuation, approved by NHS members, who are also major Vystar shareholders, business partners and insiders. Notable NHS members include:
- Lam Ngoc Minh, CEO of Lien ‘A, which is one of the world’s largest latex foam manufacturers, and a major producer of Vytex foam. Lien ‘A has worked closely with NHS to develop traditional and innovative new foam products;
- Keith Osborn, MD; member of Vystar Board of Directors, orthopedic spine surgeon and Vystar’s largest shareholder;
- Bryan Stone, MD, member of Vystar Board of Directors, nephrologist and CEO of Fluid Energy Conversion;
- Joseph Allegra, MD, Director at Oncology Molecular Imaging LLC, a Director & Owner at Cyber Logistics, Inc., a Founder at Diamond Investments II LLC and an Owner at Lincoln Lee Investments LLC; and
- Steve Rotman, now CEO of Vystar, and CEO of Rotman’s Furniture and Carpet, one of the U.S.’s largest independent furniture retailers in the country.
On April 18th 2018, Vystar acquired assets of NHS for 27,769,500 shares of restricted common stock of Vystar valued at approximately $975,000. NHS assets included: current inventory, which is expected to generate approximately $850K of revenue; equipment and intellectual property related to product development. Vystar shares for the purchase of NHS will be held for a minimum of six months following the close of the transaction. The majority of Vystar shares will continue to be by held by insiders.
Vytex is considered by many as the best foam product in the world, as it is sustainably sourced; biodegradable; purer and more resilient and durable than competitors’ latex; virtually free of odor, VOCs and allergenic proteins; and competitively priced for a wide array of over 40,000 products. Vytex is available in many offerings such as low/no ammonia and low/no nitrosamine formulations, which are now being required in certain countries and by certain manufacturers. Vystar anticipates fulfilling this multi-billion-dollar market need with Vytex.
Vytex is currently used in: multiple mattress lines, including Natura™, Gold Bond®, and Spring Air; Jeffco manufactured components for toppers and mattresses, which are sold to multiple manufacturers; and private label toppers 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. 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.
Videos on Vystar and products made with Vytex are available at: https://www.vytex.com/blog/category/videos/
An 8K filing on the transaction is available at www.sec.gov.
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.
