Shares of Vystar Corp. Common Stock (OTCMKTS:VYST) represent an interesting prospect on the pullback here in recent action as the stock corrects its run from early last week. We have highlighted this one a number of times over the past 3 months given the strong price action and trend. To make matters more interesting, the company just announced that FirstFire Global Opportunities Fund, LLC, an institutional investor who previously provided funding to Vystar, has invested $200,000 in Vystar at $0.15 per restricted common share, a 250 percent premium to yesterday’s market close.
According to the release, “the stock purchase has no rights for conversion or warrants associated with it. FirstFire is permitted to participate in any of the Company’s upcoming investment rounds in an amount up to $200,000 on the same terms Vystar offers to other investors for the next nine months.”
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 FirstFire Global Opportunities Fund, LLC, an institutional investor who previously provided funding to Vystar, has invested $200,000 in Vystar at $0.15 per restricted common share, a 250 percent premium to yesterday’s market close.
“It is almost unheard of for an OTC company — and an exciting, positive development for Vystar — to have a lender retire a convertible note and then become an institutional investor on favorable terms,” stated Steve Rotman, CEO of Vystar. “We are pleased to have such a vote of confidence and FirstFire’s support to help us move forward.”
Recent action has seen 34% during the past week in terms of shareholder gains in the name. What’s more, the listing has benefitted from a jump in recent trading volume to the tune of a bit less than 120% over what the stock has registered over the longer term.
“We welcome FirstFire as our first institutional investor and look forward to a long and mutually beneficial relationship,” Rotman noted. “Cleaning up our balance sheet by retiring all toxic convertible debt is a necessary step in the process of executing our strategic business plan to expand the company organically and through accretive acquisitions designed to improve our earnings per share. This multi-step event validates our business plan.”
Earning a current market cap value of $18.27M, VYST has a store ($191K) of cash on the books, which must be weighed relative to 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%. This may be a very interesting story and we will look forward to updating it again soon. 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.