Vystar Corp., the patent holder of Vytex, a natural rubber latex that the company says is almost completely free of the proteins that cause human allergies, has acquired NHS Holdings, which was the exclusive distributor of Vytex latex foam in the United States.
Both companies are based in Worcester, Massachusetts, and have many common shareholders.
Vystar sells a “de-proteinization” kit to latex producers that is added to raw, liquid latex during the centrifuge process that binds proteins and impurities, allowing them to be removed. Vystar claims its patented process produces the purest natural rubber available.
Vystar has worked to get Vytex’s natural rubber latex into the hands of manufacturers in a range of consumer and medical products and components. They include adhesives, balloons, condoms, medical gloves and other medical devices, as well as natural rubber latex foam for mattresses, toppers and pillows.
NHS was the exclusive U.S. distributor of Vystar’s Vytex natural rubber latex foam for use in home furnishings, bedding and upholstered furniture.
The acquisition of NHS eliminates the “middleman” when it comes to foam cutting and roll packing, a news release said. Vytex latex foam is produced overseas close to the source of natural latex rubber.
“Now unified under the Vytex brand, we anticipate developing additional product offerings and solidifying partnerships with multiple major manufacturing partners throughout the home furnishings industry,” said Steven Rotman, Vystar chief executive officer and NHS founder. “We anticipate our new offerings will include cushions and padding for use in seating and other products that we believe will achieve higher margins.”
The purchase of NHS was classified as a related-party transaction as the two companies have many common shareholders who also are board and management team members at both companies. Among them are Lam Ngoc Minh, CEO of Lien A Co. Ltd.—one of Vystar’s largest latex foam production partners, and Rotman, who also is CEO of retailer Rotmans.
Vystar acquired NHS for 27,769,500 shares of Vystar restricted common stock, valued at approximately $975,000, according to a news release. Vystar common stock (VYST) is traded on the over-the-counter market (OTCPink).
NHS’s assets included current inventory and intellectual property. The majority of Vystar shares will continue to be held by insiders, the news release said.
In May, Vystar announced it had paid off all long-term, convertible shareholder debt totaling $1.135 billion for $795,000 of restricted Vystar common stock. Approximately 85% of those convertible notes were held by Vystar insiders and major shareholders, who will now hold the restricted shares.