"We have been approached by parties interested in different Vystar divisions," Vystar CEO Steve Rotman said in a statement. "We always explore options, but after thorough analysis, we believe that a reverse merger by a significant furniture retailer or other manufacturer into Vystar could yield a four to six times multiple over a buyout."
Rotman said a "specifically targeted reverse merger" has the potential to create a combined entity that could significantly increase revenue by $100 million to $150 million, as well as increase buying power for enhanced profits by $10 million to $15 million.
"Ultimately, we believe this would support a significantly higher share price and greater market cap," he said.
"There is a keen interest in the Rotmans retail play coupled with the reverse merger into Vystar," Doyle said, noting—from his perspective—there are four companies in discussions with Vystar, "with quite a few more that have now expressed interest."
He could not divulge further information on the interested companies.
Vystar said it plans to execute the spinoff of RxAir NewCo prior to the potential reverse merger.
"Those holding shares of Vystar stock on the dividend record date would receive a dividend of RxAir NewCo shares on the dividend effective date," the company said. The record date is set as June 30, 2022, and Vystar said it will release the effective date and ratio "once details become finalized and have passed regulatory review."