WORCESTER, Mass.—Natural rubber latex manufacturer Vystar Corp. has retired a convertible note from PowerUp Lending Group Ltd., and received a $200,000 investment from FirstFire Global Opportunities L.L.C. at 15 cents per restricted common share.
Vystar made payment of $142,000, including principal of $103,000, interest of 12 percent and fees, to retire the convertible promissory note held by PowerUp and dated Oct. 23, 2018, the company said in a March 6 news release.
Vystar has paid approximately $380,000 to PowerUp since December, and has no additional notes with the lender, it said.
Vystar disclosed the investment from FirstFire, and Vystar CEO Steve Rotman noted that he pleased to work with FirstFire, which had previously provided funding, becoming the company's first institutional investor.
"It is almost unheard of for an OTC (over-the-counter) 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," Rotman said.
Worcester-based Vystar is the manufacturer of its patented Vytex natural rubber latex, a biodegradable latex with significantly reduced proteins.
Vytex has potential uses in more than 40,000 products, and currently is used in a wide range of goods including mattresses, bedding, adhesives and gloves.