Vystar Corp. eyes M&A, growth after paying off $1.5M loan
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Steve Rotman
Worcester latex manufacturer Vystar Corp. says it has paid off $1.5 million in a decade-old loan, helping to reduce its owned long-term debt by $2.6 million this year.
The transaction included 15 million shares of Vystar’s restricted common stock as payment for the principal and interest of the $1.5 million loan from Georgia-based CMA Investments.
That payment has a value of $510,000 based on the company’s stock low price of 34 cents at last Tuesday’s closing.
Per the agreement, Vystar must, for six months, continue to pay interest on a loan from Atlantic Capital Bank to CMA Investments.
Vystar, a former Georgia-based rubber latex manufacturer and supplier, relocated its headquarters to Worcester after local furniture executive Steve Rotman was named as CEO in December.
In a statement, Rotman said the company is eyeing acquisitions, expanding the company’s distribution network and new product lines.
The company is now totally free to long-term debt and liens, he said.
“Vystar is fortunate to have a strong relationship with CMA Investments and the loan guarantors, who have all been long-term inside investors in Vystar and firm supporters of Vystar’s strategic plan and growth potential,” Rotman said.
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