Worcester, MA, Oct. 09, 2020 (GLOBE NEWSWIRE) -- Vystar® Corporation (OTCQB: VYST) paid off more than $2 million in debt since July 1, 2020, including paying off multiple notes and lines of credit in September 2020, and consolidating other debt as it enters the peak retail holiday shopping season and the fourth quarter with its RxAir® UV-C Light air purifier line and Rotmans’ home furnishings poised to fill urgent needs amid the COVID-19 pandemic. The debts were satisfied as follows (full details in 8K SEC filing):
Libertas Funding LLC -- On February 24, 2020, Vystar and Rotmans had entered into an agreement with Libertas Funding LLC to sell future receipts totaling $1,089,000 for a purchase price of $825,000. The Libertas funding has been paid off with no further obligation.
New Debt Obligation - The Company entered into a $630,000 promissory note for a loan made by the Vystar President and CEO Steven Rotman, at 5% note payable at maturity. Funds for a portion of the loan were derived from the sale of Vystar common stock owned by Steven Rotman in September 2020 (see Form 4 filings at www.SEC.gov).
Payoff of $500,000 Vytex Product Inventory Loan– In 2018, five investors loaned $100,000 each with proceeds from their Fidelity Bank loan. The Company paid all principal and interest in full by the issuance of 8,250,000 restricted shares of common stock to each of the five investors.
“Vystar is in a solid business position and is entering a growth phase,” noted Mr. Rotman. “We were fortunate to have had $1.4 million in government Paycheck Protection Program (PPP) funding to help us through the shutdown and emerge running strong on all fronts. Rotmans Furniture’s reopening from the COVID shut-down, coupled with pre-sales of RxAir 400 units and personal loans from me to Vystar allowed us to pay down debt; make deposits for RxAir tooling and parts; restart production of RxAir units, begin developing upgrades for RxAir 400 and Rx3000 units; and have operating capital to facilitate growth.”
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About Vystar Corporation:
Based in Worcester, Mass., Vystar® Corp. (OTCQB: VYST) is the majority owner of Rotmans Furniture and Carpet and environmentally friendly technologies and products to improve lives, such as RxAir® UV light air purification products, Vytex™ Natural Rubber Latex (NRL) and Fluid Energy Solutions. Vystar is the exclusive creator of Vytex, 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.
Contacts:
Vystar
Media: Julie Shepherd, Accentuate PR, Julie@accentuatepr.com, 847 275 3643
Investors: Lee Howley, lhowley@vytex.com 508-791-9114
Product and Distributor Info: Steve Rotman, CEO, lhowley@vytex.com 508-791-9114
Forward-looking Statements: Investors are cautioned that certain statements contained in this document as well as some statements in periodic press releases and some oral statements of VYST officials are "Forward-Looking Statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). Forward-looking statements include statements which are predictive in nature, which depend upon or refer to future events or conditions, which include words such as "believes," "anticipates," "intends," "plans," "expects," and similar expressions. In addition, any statements concerning future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects, and possible future VYST actions, product development and delivery, which may be provided by management, are also forward-looking statements as defined by the Act. Forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to materially differ from any future results, performance, or achievements expressed or implied by such forward-looking statements and to vary significantly from reporting period to reporting period. Although management believes that the assumptions made and expectations reflected in the forward-looking statements are reasonable, there is no assurance that the underlying assumptions will, in fact, prove to be correct or that actual future results will not be different from the expectations expressed in this report. These statements are not guarantees of future performance and VYST has no specific intention to update these statements.