Rotman-led Vystar Corp. buys air purifier firm for $975K
Photo | Courtesy
Steve Rotman
Worcester latex manufacturer Vystar Corp., headed by furniture executive Steve Rotman, has acquired nearly all of the assets an Illinois maker of air purification systems for $975,000.
Vystar announced the acquisition Monday, which includes substantially all of the assets of UV Flu Technologies, which produces a patented air purification system destroying more than 99 percent of airborne bacteria, viruses and other microorganisms.
Vystar acquired all of the company’s intellectual property, including multiple patents, product lines, tooling, U.S. Food and Drug Administration clearances, research data, websites and other assets.
The purchase price is $975,000, or just over 27.9 million shares of Vystar’s restricted common stock, which can’t be assigned or sold by UV Flu for 12 months.
About 1,000 UV Flu shareholders will we welcomed to the Vystar family, the company said.
Rotman, who took over as CEO for Vystar last December, said the company is executing its plan to grow through acquisitions complementing Vystar’s portfolio and mission to offer eco-friendly products.
Rotman said UV Flu’s products an excellent counterpart to Vystar’s materials and bedding products, which are produced from non-allergenic latex.
Vystar will continue production of UV Flu’s products, but will take about 90 days to complete manufacturing of the next orders and another 45 days to relaunch sales with a more robust business model.
Residential air purifiers will be sold via online and retail channels, Vystar said.
Former UV Flu CEO Michael Ross said the company needed more capacity and larger infrastructure to maintain inventory and market effectively.
“Vystar paid about twice our market cap, but gains far more, as our market cap does not accurately reflect the more than $8 million invested in the development of the product lines, intellectual property and FDA clearances that took a decade to secure,” Ross said.
WBJ Web Partners
Most Recent
Most Recent
0 Comments