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Vystar to acquire NHS Holdings
Vystar Corporation has signed a letter of intent to acquire assets of NHS Holdings, the exclusive U.S. distributor of Vystar’s Vytex virtually allergen-, VOC- and odor-free natural rubber latex (NRL) foam.
NHS was founded in January 2015 by Steve Rotman, now CEO of Vystar, and CEO of Rotmans furniture and carpet store, one of the United States’ largest independent furniture retailers. NHS identifies and brings to market innovative, sustainably sourced, eco-friendly materials and components for use in home furnishings, apparel, and other markets. NHS was instrumental in introducing Vytex foam to manufacturers for use in mattresses and pillows.
NHS is valued at $5 million based on the last round of funding of $750,000 for 15 percent equity in NHS. Vystar proposes to acquire NHS for $1.2 million in restricted stock, a discount of 85 percent from the valuation. NHS’s largest shareholders are major investors and registered insiders of Vystar Corp., thus subject to insider trading restrictions.
The proposed acquisition is contingent upon finalization of definitive transaction agreements and approvals, which are expected to proceed quickly given the makeup of NHS and Vystar’s shareholders. The Rotmans are collectively forfeiting 75 percent of their equity in NHS to facilitate the transaction on favorable terms for Vystar.
“One of our key strategies for Vystar growth that we recently announced was to augment product offerings, profit margins, and revenue through acquisition,” Steve Rotman said in a statement. “NHS is the logical first acquisition, as any NHS revenues will add to Vystar’s bottom line, and it is more cost-effective and operationally efficient to have Vystar’s distribution in-house, particularly since the two organizations share many of the same resources.”
Rotman continued, “We anticipate increased revenue in 2018, as Vystar expects to partner with additional manufacturers in sales of multiple products, such as solid latex mattresses, toppers and pillows; gloves; and other products, which we believe will achieve higher margins in comparison to solely licensing Vytex to manufacturers. Consumers are seeking eco-friendly, durable, and biodegradable natural products that provide a healthy experience for their loved ones in place of petroleum-based plastics and memory foams.”
Vytex is currently used in multiple mattress lines, including Natura, Gold Bond, King Koil and Spring Air; Jeffco-manufactured components for toppers and mattresses sold to multiple manufacturers, and private label toppers and mattresses sold online. Vytex is also used in industrial adhesives, apparel padding and threads, shoes, sports equipment and electrical gloves.
GWCF accepting applications for college scholarships
High school seniors who live in Worcester County are invited to apply for a scholarship from the Greater Worcester Community Foundation. Scholarships range from $300 to $5,000.
Applications are submitted online. The deadline is March 5.
Instructions for applying are at www.greaterworcester.org. If more information is needed, call Beckley Schowalter at 508-755-0980.
Click here to access the application.
Listening session scheduled for WPS strategic plan
To ensure the broadest community input into the development of a strategic plan for the Worcester Public Schools, the Worcester Education Collaborative and the Worcester Regional Research Bureau will be hosting an additional listening session at 6 p.m. Jan. 24 at Claremont Academy, 15 Claremont St., in Worcester.
Members of the public are invited to participate. After a review of the process to date, focus groups will be created to allow community members to express their experiences, ideas, and aspirations relative to our schools.