WORCESTER, Mass.—The board of directors of Vystar Corp., manufacturer of eco-friendly natural rubber latex products, has authorized a stock buyback plan of up to 250 million shares of the company's common stock.
The buyback represents about half of Vystar's outstanding shares, the company said in a Jan. 15 news release. Vystar also has paid off a $105,000 convertible note in cash to limit dilution, it said.
Vystar has two remaining notes, according to the company—a $50,000 note due Feb. 22, and a $100,000 note due in April. It has the option of paying off the $50,000 note with a substantial prepayment penalty or buying it back on the market, the release said. The company will pay off the $100,000 note, given the minimal prepayment penalty, it said.
The convertible debt artificially lowered Vystar's share price, CEO Steve Rotman said, noting that "it was in the best interest of all shareholders to authorize a buyback and return the shares to Vystar's treasury."
The company is closing out the debt to have a clean balance sheet for a fresh start to 2019, in which the company anticipates completing new acquisitions as part of its business strategy, according to Rotman.
Vystar is the creator and exclusive manufacturer of Vytex natural rubber latex, which the firm claims has significantly reduced levels of proteins. Vytex has potential uses in more than 40,000 products, and is used in many lines of matresses, pillows and toppers, as well as industrial adhesives, apparel padding and thread, shoes, sports equipment and electrical gloves.
Vystar also makes and sells RxAir air purification products.