Vystar Pays Down $2+ Million in Debt Since July 2020
Worcester, MA, Oct. 09, 2020 (GLOBE NEWSWIRE) -- Vystar Corporation (OTCQB: VYST) paid off more than $2 million in debt since July 1, 2020, including paying off multiple notes and lines of credit in September 2020, and consolidating other debt as it enters the peak retail holiday shopping season and the fourth quarter with its RxAir UV-C Light air purifier line and Rotmans’ home furnishings poised to fill urgent needs amid the COVID-19 pandemic. The debts were satisfied as follows (full details in 8K SEC filing):
Libertas Funding LLC -- On February 24, 2020, Vystar and Rotmans had entered into an agreement with Libertas Funding LLC to sell future receipts totaling $1,089,000 for a purchase price of $825,000. The Libertas funding has been paid off with no further obligation.
New Debt Obligation - The Company entered into a $630,000 promissory note for a loan made by the Vystar President and CEO Steven Rotman, at 5% note payable at maturity. Funds for a portion of the loan were derived from the sale of Vystar common stock owned by Steven Rotman in September 2020 (see Form 4 filings at www.SEC.gov).
Payoff of $500,000 Vytex Product Inventory Loan– In 2018, five investors loaned $100,000 each with proceeds from their Fidelity Bank loan. The Company paid all principal and interest in full by the issuance of 8,250,000 restricted shares of common stock to each of the five investors.
“Vystar is in a solid business position and is entering a growth phase,” noted Mr. Rotman. “We were fortunate to have had $1.4 million in government Paycheck Protection Program (PPP) funding to help us through the shutdown and emerge running strong on all fronts. Rotmans Furniture’s reopening from the COVID shut-down, coupled with pre-sales of RxAir 400 units and personal loans from me to Vystar allowed us to pay down debt; make deposits for RxAir tooling and parts; restart production of RxAir units, begin developing upgrades for RxAir 400 and Rx3000 units; and have operating capital to facilitate growth.”
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About Vystar Corporation:
Based in Worcester, Mass., Vystar Corp. (OTCQB: VYST) is the majority owner of Rotmans Furniture and Carpet and environmentally friendly technologies and products to improve lives, such as RxAir UV light air purification products, Vytex Natural Rubber Latex (NRL) and Fluid Energy Solutions. Vystar is the exclusive creator of Vytex, a multi-patented, all-natural, raw material that contains significantly reduced levels of the proteins found in natural rubber latex and can be used in over 40,000 products. Vytex NRL is a 100% renewable resource, environmentally safe, "green" and fully biodegradable. Vystar is working with manufacturers across a broad range of consumer and medical products bringing Vytex NRL to market in adhesives, gloves, balloons, condoms, other medical devices and natural rubber latex foam mattresses, toppers, and pillows. For more information, visit www.vytex.com.