- Separation of RxAir® business offers pure-play investment opportunity
Vystar shareholders on the Record Date ofJanuary 5, 2022 to qualify for dividend of RxAir NewCo shares
“By separating RxAir, we hope to create a high-performing, pure-play company where strategic and budget decisions can be based solely on the best interests of growing the company and revenues in that specific market without the distractions or business and budgetary demands of our subsidiaries in disparate industries,” stated
Rational for Separation
- RxAir would have its own investor base whose understanding and interests are aligned with RxAir’s value proposition, which could be more accretive to the values of the entities separately than the value they would have together
- The company would have the ability to raise capital and pursue partnerships based on their specific industries
- Each company would be able to recruit, motivate and retain top talent via equity-based compensation directly relating to their industry-specific contribution that impacts company performance.
- Each company would be insulated from the highs and lows of the other.
Vystar and RxAir NewCo would both benefit from an undiluted concentration on their separate priorities
Vystar’s current plans for the spinoff include the following, some of which is subject to
- Approximately 36 million shares authorized for RxAir NewCo.
- RxAir NewCo is expected to trade on the OTCQB.
Vystar shareholders on the Record Date ofJanuary 5 th 2022 would qualify for dividend of RxAir NewCo shares- The Ex-Dividend Date is
December 31, 2021 . This is the last day that purchases ofVystar can be made that will settle in time to be eligible for the dividend - On the dividend Payment Date (proposed to be early in first quarter 2022),
Vystar expects to issue a dividend of 2857 common shares of RxAir NewCo for every 100,000 shares ofVystar common stock held by each shareholder of record. - The Vystar Board has approved a
$1,000,000 , two-tranche capital raise for RxAir NewCo in advance of the spin-off. The raise will not affectVystar or its shares. - The RxAir NewCo opening day price is expected to be
$2.00 per share based on the second tranche of the capital raise for RxAir at$2.00 per share. - Current
Vystar shareholders’ ownership of shares inVystar will remain unchanged. Vystar will retain 20% of the shares of RxAir NewCo anticipated valuation of approximately$14.5 million based on the expected opening price and number of authorized shares.Vystar will transfer to RxAir NewCo the RxAir-related patents, tooling, inventory and other assets having a value of$6-$8 million .Strategic Link Associates (SLA), Vystar’s RxAir manufacturing partner, will receive a seat on the RxAir NewCo Board of Directors- Vystar’s current Board of Directors and the SLA Board Member will initially serve as the interim Board of Directors for RxAir NewCo until the new Board members are named.
Steven Rotman will be the Chairman of theBoard of RxAir NewCo .Bryan Stone , MD, will be the CEO of RxAir NewCo.Steve Rotman will remain the CEO ofVystar Corp.
SLA has been instrumental in R&D for new RxAir models, enhancements to existing models, rebuilding of the supply chain, and creating manufacturing efficiencies. Additionally, SLA has funded the design, electronics, prototype testing, tooling and the initial work needed to complete manufacturing for the production of the re-engineered RxAir3000 and a new RxAir500 model designed for smaller spaces.
“SLA is financially and strategically invested in
How RxAir Works
RxAir is an FDA-cleared UV-C light air purifier that has been proven in EPA certified lab tests to destroy a myriad of harmful airborne pathogens – without chemicals or any significant ongoing effort by the consumer. The RxAir UV-C light air purifier’s patented “kill chamber” forces the air to spiral in close proximity around three long UV-C tubes for an extended time, ensuring the proper 254 nm wavelength dosage for maximum microbicidal and neutralization activity.
RxAir improves air quality by:
- destroying a myriad of airborne viruses and bacteria, including multiple coronaviruses; H1N1; MRSA; pneumonia; strep; tuberculosis; measles; and influenza;
- inactivating molds, fungi and other pathogens;
- neutralizing odors and volatile organic compounds (VOCs), such as those emitted from manufacturing processes, carpets, paints, cleaning supplies, coatings, solvents, chemicals, animals and cooking.
For information on how to become an RxAir/Rx3000 distributor and/or bulk pricing, contact info@Rxair.com or 508-791-9114.
Follow us on social media:
Twitter: | @VystarCompany @RxAir |
Facebook: | @RxAir |
Instagram: | @rxair_air_purification |
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Forward-looking Statements: Investors are cautioned that certain statements contained in this document as well as some statements in periodic press releases and some oral statements of VYST officials are "Forward-Looking Statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). Forward-looking statements include statements which are predictive in nature, which depend upon or refer to future events or conditions, which include words such as "believes," "anticipates," "intends," "plans," "expects," and similar expressions. In addition, any statements concerning future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects, and possible future VYST actions, product development and delivery, company value, spin-off logistics, plans, pricing and timing, which may be provided by management, are also forward-looking statements as defined by the Act. Forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to materially differ from any future results, performance, or achievements expressed or implied by such forward-looking statements and to vary significantly from reporting period to reporting period. Although management believes that the assumptions made and expectations reflected in the forward-looking statements are reasonable, there is no assurance that the underlying assumptions will, in fact, prove to be correct or that actual future results will not be different from the expectations expressed in this report. These statements are not guarantees of future performance and VYST has no specific intention to update these statements.
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