Vystar® Corporation's Board of Directors has authorized management to pursue the spinoff of its Vytex® natural rubber latex business into a separate publicly-traded entity initially concentrating on the foam markets (mattresses, pillows, and mattress toppers), while the parent will continue to focus on growing the sleep health and wellness market. Each entity would have its own management team and Board of Directors. Vystar is the exclusive creator of Vytex Natural Rubber Latex, a multi-patented, all-natural raw material that contains significantly reduced levels of non-rubber particles and proteins found in natural rubber latex.
It is anticipated that the transaction would be structured as a pro rata distribution to all shareholders of Vystar with the holders of its common stock receiving additional common stock in the Vytex distribution. Upon closing of the proposed spinoff transaction, Vystar's existing shareholders would hold interests in both Vystar and Vytex. Details on the structure, management, governance, and other significant matters related to the spinoff are still in development.
"We believe this transaction will unlock the value hidden within each of the two entities to achieve strategic and operational clarity and growth," said William Doyle, Vystar CEO. "The parent will have its unique flagship sleep health business with additional wellness offerings planned. The proposed spinoff will free the Vytex Division to focus on aggressively marketing Vytex's NRL raw material, launching its Vytex NRL foam business, and conducting the research and strategy planning to enter the apparel markets."
Vystar will hold its Annual Shareholder Meeting on Monday, September 15, 2014 at 2:00 PM Eastern at the Atlanta offices of Greenberg Traurig for shareholders of record.
"For the first time, we will be introducing to shareholders extensive details of our collaborative efforts with our strategic partners, including foam producers, mattress manufacturers, retail furniture stores, and Internet specialists," stated Doyle. "We believe the presentations by several of our partners will provide insight into the value and opportunities each partner brings that will ultimately increase shareholder value."
Meeting results and select presentations will be available by the end of business on Sept. 17, 2014 at www.vytex.com. Company filings with the US Securities & Exchange Commission are available on www.sec.gov.