One stock that has seen significant volatility in recent action is Vystar Corp. Common Stock (OTCMKTS:VYST). To help drive the story, the company just 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 Corp. Common Stock (OTCMKTS:VYST) promulgates itself as a company that manufactures and sells Vytex natural rubber latex (NRL) products to the manufacturers of rubber and rubber end products in the United States.
The company owns a technology to produce Vytex NRL, which reduces antigenic protein in natural rubber latex products to virtually undetectable levels in liquid NRL and finished latex products. Its NRL or latex substitutes are used in a range of products, including balloons, textiles, footwear and clothing, adhesives, foams, furniture, carpets, paints, coatings, protective equipment, and sporting equipment, as well as health care products, such as condoms, surgical and exam gloves.
The company was founded in 2000 and is based in Worcester, Massachusetts.
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.
According to company materials, “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, and the owner of RxAir UV light air purification 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.”
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As noted above, VYST just 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.
Traders will note a bit more than 1400% during the past week in terms of shareholder gains in the stock. In addition, the stock has benefitted from a jump in recent trading volume to the tune of just shy of 900% beyond its prior sustained average level.
“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.”
Now commanding a market cap of $3.78M, VYST has a reserve ($191K) of cash on the books, which is balanced by about $1.9M in total current liabilities. VYST is pulling in trailing 12-month revenues of $256K. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 3373%. We will update the story again soon as developments transpire. Sign-up for continuing coverage on shares of $VYST stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $VYST, either long or short, and we have not been compensated for this article.