WORCESTER, Mass.—Natural rubber latex manufacturer Vystar Corp. has paid off all of its $1.13 million long-term convertible debt for $795,000 of restricted Vystar common stock, the company said.
This represents a 30 percent savings for Vystar and its shareholders, the company said in a May 8 press release.
Approximately 85 percent of the convertible notes were held by Vystar insiders and major shareholders, who now will hold the restricted shares.
"This is a major step in our strategic plan that includes eliminating all debt," said Vystar CEO Steven Rotman. "It is important to have a strong and clean balance sheet in order to maximize shareholder value as we execute other portions of our strategic plan."
Vystar is the creator and exclusive manufacturer of Vytex, a pure grade of latex the company advertises as biodegradable, durable and virtually allergen- and odor-free.
Vytex is used in many mattress lines, including Natura, Gold Bond and Spring Air, as well as in various components for toppers and mattresses, Vystar said. It also is used in industrial adhesives, apparel padding and threads, shoes, sports equipment and electrical gloves, it said.
In April, Worcester-based Vystar acquired the assets of its exclusive U.S. distributor, NHS Holdings L.L.C.
New acquisitions, development of new Vytex formulations and the launch of new product lines are all part of Vystar's strategic plans, Rotman said.