VYST 18 Page Research & Edited $2.77 & $3.51 Valua
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Posted On: 02/17/2019 10:52:42 PM
VYST 18 Page Research & Edited $2.77 & $3.51 Valuations…
The company informed myself and many others that called them that they are going to acquire 100% of Rotmans Furniture as indicated per their 8-K filed with the SEC below and that Rotmans is generating over $35 Million in Revenues with a 48% to 52% Gross Profit Margin and a 19% Net Profit Margin:
Quote:
https://www.sec.gov/Archives/edgar/data/13080...093018.htm
Within this post, the primary objective is to show investors how I believe the Rotmans and their Board of Directors (BOD) are viewing things to justify why they believe VYST can get to trading on the NASDAQ without ever needing to do a reverse split. However, there are quite a few other topics that I will discuss that I have seen others post about that believe are important too.
The share buyback is important, but like I stated before, the acquisition of Rotmans is what’s most important because that is what’s going to bring ”immediate” value to their financials, the company, and their stock that will position VYST to meet NASDAQ qualifications to trade on the NASDAQ.
The 250 Million share buyback was announced a while back when the stock was trading at much cheaper prices. That amount was announced based on an initial budget that was approved to be used to execute the share buyback program. In my opinion, I think the company was expecting to buy back shares in the .01 to .015 range. With the stock trading higher, and trading much thinner, and since the price is probably going to be 5 to 10 times or so higher when the buyback starts, I would suspect that the company will be able to buyback 5 to 10 times less than the amount from that up to 250,000,000 shares that they stated. I think they were maybe suspecting that such price increases ”could” happen which is why they stated ”up to” the 250 Million shares as a best-case scenario.
So, I believe that the company will be able to buyback anywhere from 25 million shares to 50 million shares. This means that with the Outstanding Shares (OS) roughly being around 500,000,000 shares per what they had PR-ed, I think it’s fair to use the Substitution Property to replace the variable of 250 Million shares for the OS from previous valuations I posted to be as a worst-case scenario, roughly 500 million shares to simply remain constant. If in the future a more finite number exists, then once again, use the Substitution Property to replace the OS variable.
Important to note, VYST has $31,319,398 available to be used as a 2 year carry back and 20 year carry forward Tax Net Operating Loss (NOL) to reduce the taxable income for the company’s future tax years. This is why VYST is such an attractable merger candidate. This is very important because this is what will help the company to trade at levels to meet the NASDAQ share price requirement of having a minimum $4.00 per share bid for 30 consecutive days. VYST will only need to maximize the Tax NOL by carrying it forward for one year since this current one-year time frame is the most important to graduate VYST to the NASDAQ. That means that the $31,319,398 will all be applied to the financials of VYST for the one-year time frame to have $31,319,398 applied to its coming year profitable Income Statement after completing the acquisition of Rotmans.
I explained the Tax NOL in much greater detail within the post below:
https://investorshub.advfn.com/boards/read_ms...=146107541
$31,319,398 = Tax NOL One Year Carry Forward
Consider the VYST valuation below with using 500,000,000 shares for the Outstanding Shares (OS) derived from using the fundamental formulas below so that all may understand:
Revenues x Gross/Net Profit Margin = Gross/Net Income
Gross/Net Income + Tax NOL = Adjusted Gross/Net Income
Adjusted Gross/Net Income ÷ Outstanding Shares (OS) = Earnings Per Share (EPS)
EPS x Price to Earnings (PE) Ratio = VYST Share Price Valuation
Before I get to the share price valuation parts, I think it’s important for all to understand why I have decided to use the Price to Earnings (PE) Ratio to determine the valuations. From my conversation with the company, the company believes that the PE Ratio is higher than 20 for its growth rate. After doing further research, I believe they are correct. When analysts talk about the PE Ratio, they commonly refer to the trailing PE which is why such is what I will use for the purpose of deriving this valuation as such logic is further explained in the link below:
https://www.investopedia.com/ask/answers/0501...ing-pe.asp
The PE Ratio is important because to get the Fundamental Valuation to consider for where VYST could exist to trade compared to the other stocks within its Industry, we must multiply the learned Earnings Per Share (EPS) by the PE Ratio for its Industry. The links below should help to better understand the PE Ratio logic as being the growth rate to help assess the fundamental valuation of a stock:
http://investorshub.advfn.com/boards/read_msg...d=57154170
http://www.investopedia.com/terms/p/price-earningsratio.asp
After the acquisition, it will be fair to consider that VYST will exist to trade within the Furniture Industry. Confirmed from the link below, the trailing PE Ratio for the Furniture Industry is 36.53:
http://pages.stern.nyu.edu/~adamodar/New_Home...edata.html
To get where a stock should fundamentally trade, as I had indicated within the formulas above, you must multiply the EPS by the PE Ratio for the Industry for which the stock would trade. Consider below…
From these variables, we can derive the Fundamental Valuation as indicated below from two different models: Gross Profit Margin Model and the Net Profit Margin Model:
Gross Profit Margin Model
The company informed me that from the over $35 million in Revenues coming in from the Rotmans acquisition, they have a 48% to 52% Gross Profit Margin. I will use the 48% to remain conservative. Consider below to derive an Earnings Per Share (EPS):
$35,000,000 Revenues x .48 Gross Profit Margin = $16,800,000 Gross Income
$16,800,000 Gross Income + $31,319,398 Tax NOL = $48,119,398 Adjusted Gross Income
$48,119,398 Adjusted Gross Income ÷ 500,000,000 (OS) = .0962 EPS
.0962 EPS x 36.53 PE Ratio = $3.51 Per Share Gross Valuation
Net Profit Margin Model
The company informed me that from the over $35 million in Revenues coming in from the Rotmans acquisition, they have a 19% Net Profit Margin. Consider below to derive an Earnings Per Share (EPS):
$35,000,000 Revenues x .19 Net Profit Margin = $6,650,000 Net Income
$6,650,000 Net Income + $31,319,398 Tax NOL = $37,969,398 Adjusted Net Income
$37,969,398 Adjusted Net Income ÷ 500,000,000 (OS) = .0759 EPS
.0759 EPS x 36.53 PE Ratio = $2.77 Per Share Net Valuation
The company told me that FINRA will likely have them roll Rotmans’ financials up into VYST as the financials for moving forward because of how huge the acquisition would be for VYST. I was informed that they are prepared to roll 3 years worth of audited financials up into VYST to consummate the acquisition. This is why from the earlier VYST news released, it was indicated how they are making VYST debt free in preparation for the acquisition.
Regarding the $1.5 Million & $2.6 Million Long Term Debt Paid
Within the PR below, pay close attention to where it says... CMA Investments, LLC and its guarantors accepted 15M shares of restricted Vystar common stock as payment for the principal and interest on the decade-old loan.
This is a huge show of confidence that leads me to think that they believe that such 15 Million shares are considered at a discount to where they still would make money off of their shares for knowing what is coming. Think about it...
$1,500,000 Debt ÷ 15,000,000 Restricted Shares = .10 Per Share
This means that they were willing to accept 15,000,000 of VYST Restricted Shares at .10 per share to pay off $1.5 Million in Debt. Maybe it's me, but this leads me to believe that whatever they learned to accept such a payoff in VYST Restricted Shares, is going to take the price far higher than .10 per share. Read the PR below:
Quote:
https://seekingalpha.com/news/3370252-vystar-...-debt-1_5m
Vystar pays off long-term debt of $1.5M
Jul. 16, 2018 9:02 AM ET|About: Vystar Corp. (VYST)|By: Niloofer Shaikh, SA News Editor
Vystar Corporation (OTCPK:VYST) has paid off $1.5 M in long-term debt, for a total reduction in long-term debt of $2.6M this year.
CMA Investments, LLC and its guarantors accepted 15M shares of restricted Vystar common stock as payment for the principal and interest on the decade-old loan.
Stated Steve Rotman, CEO of Vystar, “Vystar is now totally free of long-term debt and liens. This helps clean up our balance sheet and enables a fresh start as we execute our strategic plan that includes further acquisitions, expanding the Vytex distribution network, development of new Vytex formulations, and development and launch of new product lines.”
Regarding the Share Buyback
As I had started explaining above, I believe as a worst-case scenario, VYST is only going to be able to buyback roughly around anywhere from 25 to 50 million shares. Of course, the best-case scenario would be buying back up to the 250 million shares as they had PR-ed, but the 250 Million share buyback was announced a while back when the stock was trading at much cheaper prices. I could be wrong, but I think the company was expecting to buy back shares in the .01 to .015 range. With the stock trading higher, and trading much thinner, and since the price is probably going to be 5 to 10 times or so higher when the buyback starts, I would suspect that the company will be able to buyback 5 to 10 times less than the amount from that ”up to” 250,000,000 shares that they stated. I think they were maybe suspecting such could happen which is why they stated ”up to” the 250 Million shares.
Some had asked… Why did they inform the public of the share buyback which would help the price to increase which forces them to buy back shares at a higher price? Well, VYST no doubt had to inform the public of their planned share buyback in order to be in compliance with the SEC Fair Disclosure Rules. With them knowing behind the scenes their plans of moving their company from a penny stock to successfully trading on the NASDAQ and not disclose such, could had posed an Insider trading problem. Having inside information is not illegal, but knowing their goals to get to the NASDAQ and buying back shares while not informing the public, could have been a significant violation of the SEC Fair Disclosure Rules. This is why such was PR-ed and why the company speaks to their shareholders. Heck, the story is so big, most would not believe it unless they called the company and speak to them themselves.
For those not believing that a penny stock could get to the NASDAQ without doing a reverse split, read the post below of which I provided two examples where those stocks had gone from pennies to over $30.00+ per share:
https://investorshub.advfn.com/boards/read_ms...=146554390
For inquiring minds, the buyback program was approved by their Board of Directors (BOD) to buy back ”up to” 250 million shares. Even though it was approved by their BOD, it hadn’t started yet. It was mentioned that the share buyback was going to be through Charles Schwab. Schwab decided not to do the share buyback for VYST because they believe it would be a conflict of interest issue because one of the Board of Directors for VYST has a very large account with Schwab already and have previously bought and still own shares of VYST as confirmed through earlier Form 4s filed with the SEC. I posted some details regarding these Form 4s and others within the posts below:
https://investorshub.advfn.com/boards/read_ms...=146094320
https://investorshub.advfn.com/boards/read_ms...=146488994
There is a chance that the person is going to be buying more shares and doing so would make Schwab uncomfortable. They are going through some other firms, but I don’t believe we will learn of any further details because I think the company believe that enough details are already out to the public regarding the share buyback.
They have a team of lawyers and other experienced people on board that are way smarter than me so I trust that they will figure it out. I do think that it’s sad that there are so many barriers in place to allow a company to do a legitimate buying back of their own shares to retire them to their Treasury, especially when it’s so easy for companies within the market to be allowed to sell shares. It should be the other way around. The rules should make it easier to buy back shares instead of being so easy for companies to dilute and sell shares to the market. Only my opinion on a side note, but the rules should not be making things so hard for VYST to buy back shares to retire them to their Treasury.
I could be wrong, but I think a subliminal hint that the share buyback will start will be when they file a Form 3: Initial Statement of Beneficial Ownership of Securities since it’s usually the first form filed before Insiders start to buy shares of a company before filing Form 4s:
https://www.investopedia.com/terms/f/form3.asp
I’m not sure about this regarding a ”company” versus ”Insiders” buying back shares because the rules regarding the Form 3 doesn’t mention such needing to be done if a ”company” is buying back shares. Since I’m not really sure of the rules in great detail and the rules don’t address such, the company could jump straight to filing Form 4s.
Here are some links that might be educational to some regarding the rules for doing a share buyback:
https://www.investopedia.com/terms/r/rule10b18.asp
https://www.sec.gov/divisions/marketreg/r10b18faq0504.htm
https://www.sec.gov/rules/final/33-8335.htm
Very important to note regarding the share buyback, I think investors should not get all fired up about the share buyback. That’s only a little cherry on top of the dessert. I would focus on the full course meal which is the acquisition of Rotmans coming into VYST because that’s what’s going to get VYST to the dollars and trading on the NASDAQ exchange. The share buyback, whether it eventually happens or not, is simply a good gesture. If for some reason it doesn’t happen, there is lots of proof that they tried. The most important thing as I had explained above is that with or without the share buyback, the valuation would still remain intact.
Regarding the Rotmans Furniture Acquisition/Merger
The company originally stated that they believe the acquisition/merger of Rotmans furniture into VYST would take place around mid-February time frame. Please understand, mid-February does not mean 15 February. The time frame of mid-February means anywhere from 15 Feb, but give or take a few days up or down from that daye. I was informed that they are prepared to roll 3 years worth of audited financials up into VYST to consummate the acquisition. Because this is the market and usually things are not on time or perfect, don’ be shocked if they come across minor delays. Please, this would not mean that the sky is falling. I saw the minor delays in these other stocks below, but those stocks still went from being a penny stock to trading on the NASDAQ and both trading over $30.00+ per share without ever doing a reverse split as indicated within the link below:
https://investorshub.advfn.com/boards/read_ms...=146554390
Also, important to note, the Rotmans Furniture store acquisition price is $4 million that will be bought with cash and stock. I think when I mentioned this earlier, I didn’t explain it in clear detail. The shares that will be used for the acquisition will be converted once the stock is trading in the dollars without the consideration of a reverse split. This is what their plans are based on what they believe.
However, if for some reason what they believe to happen doesn’t happen with VYST never reaching the dollars, then a small reverse split would be needed, but then the shares will only convert post reverse split price.
So, to close on this thought, the stock component just can’t convert unless VYST is in the dollars one way or the other. This means that the acquisition will be a lot less dilutive because of how high the price would be from the Rotmans acquisition which would require a smaller amount of shares needing to be used. They wanted to be overly fair, especially since the Insiders own over 75% of the company (based on the old OS) per what I was informed.
Regarding “Any” Possibility of a Reverse Split
I posted about this a little while back, but I think it needs to be addressed now. They are going to try to get to the NASDAQ without needing to ever do a reverse split. They have no plans of doing a reverse split. As I have indicated above, the acquisition of Rotmans, per their recent plans, could justify VYST for trading at a high of $3.51 per share through logical deduction. This is very close to being at the NASDAQ requirement of trading at a $4.00 minimum bid for 30 consecutive trading days. Because of basic ”Supply vs Demand” principles, it wouldn’t take much to maintain the $4.00 minimum bid for 30 consecutive trading days.
However, the company must be prepared to improvise to allow for flexibility if the stock gets to $1.00 and stalls or $2.00 and stalls or $3.00 and stalls. Then like I was told, then the company would be forced to do a very small ratio of a reverse split to meet the NASDAQ requirement of having a $4.00 minimum bid for 30 consecutive trading days. I was informed by the company that the only way that VYST would do a reverse split would be if they needed to do a small no higher than a 1-10 to meet NASDAQ requirement and that would take place if VYST only had gotten to a minimum of .50 per share. That would have VYST trading at $5.00 per share which is much higher than the NASDAQ requirement of having a $4.00 minimum bid for 30 consecutive trading days.
I think it’s important for all to understand that a reverse split was not submitted to FINRA. It was never approved to be executed by FINRA because VYST never submitted application to do the reverse split to FINRA to be approved. That's why you won't see one. The VYST 10-Q clearly stated that there was an approved Board Resolution from the majority shareholders and the Board of Directors to "authorize" a reverse stock split at a range from 1:5 through 1:50 anytime over the next 12 months "at the Board’s discretion" which means if they deem it fit to ever need one. This is exactly what I had explained within the posts below for why there was a good chance that we might not ever need one:
https://investorshub.advfn.com/boards/read_ms...=146540121
https://investorshub.advfn.com/boards/read_ms...=146915305
Here is the VYST 10-Q to read under NOTE 12 SUBSEQUENT EVENTS on Page 20:
https://www.sec.gov/Archives/edgar/data/13080...093018.htm
Please, I mean no disrespect, but anyone that's spooked about the possibility of a 1-10 ratio reverse split or lower to get to the NASDAQ, respectfully, has no experience about market logic and sound reasoning, but now is the time to learn. I'll take that any day all day with any stock that I am in and have ever been in if such a situation presented itself as it does here with VYST. Just think, if VYST gets to the $2.00 to $3.00 range, they would only need to do a very small ratio reverse split to ensure that VYST remains at or over $4.00 per share to meet the NASDAQ minimum bid requirement for 30 consecutive trading days.
Again, based on what I was informed by the company, they believe they will not need to do a reverse split. However, they will not let their goals of getting to the NASDAQ be extinguished because of not doing one if at such time it is needed. This is why such was worded as it was within their 10-Q as I indicated and explained above. I was told that "IF" such is the case, VYST would announce the small ratio reverse split at the same time of announcing their application submission to trade on the NASDAQ.
Very important to note, the company told me that they would make sure that the NASDAQ submission would be filed for investors to confirm at the same time of any reverse split "IF" a reverse split is ever needed because they would not want investors to think that they would be executing any reverse split for the negative norms that exists with stocks that have done reverse splits before in the market. They are very aware of this. I was told that if they never submit their application to the NASDAQ, they will never do a reverse split… PERIOD. This is how confident they are about getting to the NASDAQ.
Anyone with concerns about a reverse split, this is where you learn that even though most reverse splits are bad and are for negative reasons, there are a few times to where they are for positive reasons and again, that’s ”IF” they ever need to do one.
Here's a good example of a stock that I was in that had done a small ratio reverse split. Look at what happened with INTV as a better stock to "compare and contrast" how a stock with substance reacts after doing a small ratio reverse split. INTV had done a small 1-50 reverse split. The pre-split price was .001 and the post-split price was .05 per share. Later after their small 1-50 reverse split, INTV ran from .05 to $6.74 per share.
Here on Nov 27, 2017, I created a valuation post stating that INTV would be worth $5.42 per share:
https://investorshub.advfn.com/boards/read_ms...=136448710
Later on Dec 18, 2017, INTV ran to $6.74 per share with 4,884,032 shares in volume for that day:
https://ih.advfn.com/stock-market/USOTC/integ...rical-data
I will tell you, no offense to INTV, but VYST has far more going on than INTV since the acquisition coming into VYST is going to bring over $35 Million in Revenues and is very profitable. I remember back during the INTV days, I was really trying to tell investors to fully understand the magnitude of what was transpiring and to "not" stereotype INTV with its ”low ratio” reverse split to be of the norm with those other stocks that had done the ”high ratio” reverse splits. Heck, since I'm more wrong than being right within this tough market, some ignored my thoughts then and I truly understood why. I will say that the situation here with VYST is far better and what's happening here should not be ignored. I really think all should really dig in and research the growth that is transpiring here with VYST.
Regarding the Name, Ticker, and CUSIP# Changes
Some were wondering… "Would a CUSIP change make the short shares have to cover?"
For inquiring minds, the CUSIP # is like the SSAN for a stock. All stocks have one.
The first time that I posted this info below was on Saturday, 02/03/07 at 05:18:23 AM:
https://investorshub.advfn.com/boards/read_ms...d=16749882
I posted some better-looking versions a few more times years afterwards, but below is my conversation I had with the CUSIP Service Bureau …
I think it is important to understand what you are about to read below regarding the CUSIP# and name change for VYST which is an important piece that I believe will help to create a covering of any Short or Naked Short (fails to deliver) positions that "might" exist in VYST. I haven't really researched VYST in detail to confirm if there is any Short or Naked Short positions, but if I had to guess, there probably are some positions of such.
Please understand, VYST is not some "short covering" play or stock, but if there is any kind of short positions in VYST, it will help catapult the price to some significant highs because those guilty will be forced to cover based on all of the legitimate things that VYST is doing. I wasn't ever going to bring this up here within the forum, but since you did, I will address such with my thoughts.
The name of the guy I spoke to was Vinnie. In my earlier posts, I think I spelled his name wrong since I'm just now noticing that it's actually spelled as "Vinny" from how it's spelled on the CUSIP Bureau website that's now called the CUSIP Global Services:
https://www.cusip.com/cusip/contact-us.htm
For those just learning about this for the first time, what you are about to now read is a revision of a post that I had done a few years ago that might be of some use here for VYST, but I will spell his name right this time:
Quote:
A few years ago, I called the CUSIP Service Bureau at 212-438-6565 and spoke to a few people and kept the notes from my conversation. I finally landed at speaking with a guy by the name of Vinny. Please forgive my redundancy for posting this if it has already been thoroughly discussed. Pay particular attention to what's in bold below. The above phone number is from the link(s) below:
http://www.cusip.com/
https://www.cusip.com/cusip/contact-us.htm
https://www.bloomberg.com/research/stocks/pri...Id=7702188
Vinny informed me that a CUSIP change "usually" comes with a name change, but not always. He stated that a name change will "always" come with a CUSIP# change though. He told me that the "name change" and the "CUSIP# change" starts with the company's Transfer Agent (TA) coordinating electronically with the CUSIP Service Bureau by linking the company's name and address. Then the CUSIP Service Bureau Coordinates with the Depository Trust Company (DTC).
The DTC will serve as the overseer to coordinate with whomever as deemed necessary. Sometimes the TA will coordinate with the DTC too for certain confirmations or transactions as deemed necessary. The DTC makes sure there is proper share accountability for proper dissemination into our brokerage accounts. This is all done electronically.
After the company/TA receives their new CUSIP# from the CUSIP Service Bureau, the company/TA (& legal team) then coordinates with the NASDAQ/NASD/FINRA and SEC for the already coordinated amount of shares as the new inventory. The company/TA will then coordinate with the DTC to confirm the amount of shares and other key info.
After accountability is confirmed by the DTC, the DTC then authorizes the brokerage companies to change all old CUSIP numbers to the new CUSIP numbers electronically within our brokerage accounts. A CUSIP# change is not enough from what most believe throughout the investing/trading community to force a covering of a naked shorted position in my opinion.
Personally, I think some companies don't fully understand why it is important to do a "name change" and "CUSIP# change" if you are trying to force a covering of a naked shorted company. A ticker change wouldn't hurt either although the guy informed me that he is not knowledgeable about ticker changes as that coordination goes through the NASDAQ/NASD/FINRA and SEC with the company's legal team.
Vinny, from the CUSIP Service Bureau, explained it to me as when stock 1234 changes its name and CUSP# to stock 5678, the shares of stock 5678 are given to them electronically by the TA to replace stock 1234. This is the key transaction. If only a CUSIP# change transpires then a lesser type of accountability takes place. The name change matching the address of the company is what actually forces an exchange of the "old inventory" of shares to the "new inventory" of shares. Without the name change, there is NOT a "movement of shares" or a "physical accounting of shares" from the TA that takes place.
Only one phase of the accountability process is required to take place to verify accountability when only a CUSIP# change transpires because of the lack of not having a creation of the "new inventory" of shares by the company/TA. Therefore no movement of shares takes place. This is a simple misunderstanding by many companies, but if not considered, it could be the difference for any type of forced covering of any naked shorted positions.
If there is NO DILUTION, a covering of the naked shorted positions should take place due to what's revealed during the accountability process between the DTC after getting the "new inventory" of shares from the CUSIP Service Bureau if there is not only a CUSIP# change, but a name change too.
Because of the CUSIP# change, the MMs will be required to account for each of the old shares with the new shares. Because of the name change, it's important because it forces the DTC to play a more finite role by not only accounting for the old shares to equal the new shares electronically, but forces them to match a "new inventory" of shares that have been given to them from the CUSIP Service Bureau as the new official/approved inventory by way of the shares given from the company/TA.
Please understand, I haven't really researched if there is an existing Short or Naked Short position here in VYST (edited for this post). However, if such does exists, hopefully this information helps investors/traders to have a better understanding as to the importance of not just a CUSIP# change, but a name change too and how such should culminate with a substantial price increase considering where VYST (edited for this post) is trading. I am confident that we are in good hands regardless.
So the next time someone mentions something to you regarding unsettled shares that was not delivered after the three day settlement requirement because of a ”fail to deliver” taking place, hopefully some of the thoughts within this post will help with providing a basic understanding.
For those who are new to understanding Naked Shorting, below are some old notes I have of some links of information that might help:
Dark Side of the Looking Glass: Part 1
http://www.youtube.com/watch?v=gpWzOjB8qtU
Dark Side of the Looking Glass: Part 2
http://www.youtube.com/watch?v=k1G-FW8_vn8&am...ure=relmfu
Dark Side of the Looking Glass: Part 3
http://www.youtube.com/watch?v=bKEAE42cDbk&am...ure=relmfu
Dark Side of the Looking Glass: Part 4
http://www.youtube.com/watch?v=ufythzV9tA0&am...ure=relmfu
Dark Side of the Looking Glass: Part 5
http://www.youtube.com/watch?v=JKc0KQvvfWE&am...ure=relmfu
Dark Side of the Looking Glass: Part 6
http://www.youtube.com/watch?v=bXhs4UZgOsg&am...ure=relmfu
Dark Side of the Looking Glass: Part 7
http://www.youtube.com/watch?v=HM1289oaoqI&am...ure=relmfu
Dark Side of the Looking Glass: Part 8
http://www.youtube.com/watch?v=yVvWZv0JVm8&am...ure=relmfu
Dark Side of the Looking Glass: Part 9
http://www.youtube.com/watch?v=ImU_WTlZ-zA&am...ure=relmfu
Robert Shapiro discusses naked short selling on CNBC:
http://cdn2.overstock.com/06-0223_RShapiro_CNBC_NSS.wmv
Hearing of the Senate Banking, Housing and Urban Affairs Committee - The State of the United States Economy and Financial Markets
Statement
By: Bob Bennett
Date: Feb. 14, 2008
Location: Washington, DC
BREAK IN TRANSCRIPT
http://votesmart.org/public-statement/319339/...KUeMPnxr4M
Read below to see that VYST is going to have yet still much more going on within the company operationally to include the Rotmans acquisition.
** The company informed me that they are going to acquire 100% of Rotmans.
** Rotmans Furniture has won Retailer of the Year three out of the last five years running.
** Currently, Rotmans is 280,000 square feet with just shy of 200 employees.
Quote:
https://www.rotmans.com/
https://www.youtube.com/user/rotmansfc
Video Confirming over $35+ Million in Revenues by Rotmans Furniture Store
https://www.youtube.com/watch?v=I6YPzlqFWUg
https://www.youtube.com/watch?v=TXD-6Fp67kU
https://www.bloomberg.com/quote/VYST:US
About Vystar Corp (VYST)
Vystar Corp. creates natural rubber latex. The Company's product is used in an extensive range of products including balloons, textiles, footwear and clothing (threads), adhesives, foams, furniture, carpet, paints, coatings, protective equipment, sporting equipment, and especially health care products such as condoms, surgical and exam gloves.
Quote:
https://www.vystarcorp.com/
Quote:
https://www.vytex.com/
https://www.amazon.com/s/ref=nb_sb_ss_i_8_6?u...4GGCJEMNW7
Vystar Vytex on New To The Street 4/30/2017
https://www.vytex.com/blog/category/videos/
https://www.youtube.com/watch?time_continue=4...GbuFFA9vJw
Vystar Vytex New To The Street 3/20/2017
https://www.vytex.com/blog/category/videos/
https://www.youtube.com/watch?v=HEMziQw0LpU
Quote:
https://www.rxair.com/
VYST ABC World News Confirmation of Rx3000, RxAir™
The VYST Rx3000, RxAir™ has been confirmed as a viable product on ABC World News below and is used in over 400 hospitals and is FDA-cleared as a Class II Medical Device:
(Go to the 53 seconds time stamp within the video below.)
Quote:
https://abcnews.go.com/WNT/video/california-m...s-23135787
http://globenewswire.com/NewsRoom/AttachmentN...26a9a6c/en
Per the news today, the VYST Rx3000, RxAir™ has started production again and combines powerful germicidal ultraviolet (UV) light with a patented 5-stage HEPA filtration proven in independent EPA- and FDA-certified laboratory testing to destroy on first pass over 99.97% of airborne viruses, bacteria and other contaminants. Here's the news below for those who have not read it yet in its entirety:
Quote:
http://www.globenewswire.com/news-release/201...ities.html
Vystar to Resume Production of Rx3000 UV Light Air Purifiers for Use in Hospitals, Healthcare Facilities
• Destroys on first pass more than 99.97% of harmful airborne viruses and bacteria.
• Inactivates pathogens that cause measles, the common cold, MRSA (staph), whooping cough, TB, pneumonia and other antibiotic-resistant and viral infections.
WORCESTER, Mass., Feb. 07, 2019 (GLOBE NEWSWIRE) -- Vystar Corp. (OTC: VYST) is resuming production of the Rx3000™, a hybrid air purifier designed by biomedical engineers specifically for hospitals. The Rx3000 combines powerful germicidal ultraviolet (UV) light with a patented 5-stage HEPA filtration proven in independent EPA- and FDA-certified laboratory testing to destroy on first pass over 99.97% of airborne viruses, bacteria and other contaminants. Vystar acquired the assets and patented intellectual property related to the Rx3000, RxAir™, custom filtration and other UV light air purification technologies from UV Flu Technologies in 2018 after production had stopped.
Rx3000 is used in over 400 hospitals and is FDA-cleared as a Class II Medical Device. Priced at less than $5,000 per unit to service a 1,500 – 3,000 sq. ft. area, Rx3000 is very cost effective. Vystar also acquired all of the equipment necessary to make the custom filters used in the Rx3000. These large multi-stage filters retail for approximately $800 and last up to 1 year, depending on use. Vystar expects the first new Rx3000 units will be available to hospitals in the second quarter of 2019 via Vystar’s medical distribution network partners.
“Measles, influenza, strep, MRSA (staph), pneumonia, tuberculosis and other airborne illnesses are a major concern for hospitals and healthcare facilities year round,” stated Bryan Stone, MD, Internal Medicine and Nephrology, Chief of Medicine for Desert Regional Medical Center, and expert consultant for medical application and technology development. “We believe it is important that hospitals have access to the Rx3000 technology that helps reduce risk of infection from airborne antibiotic-resistant viruses and bacteria. We also encourage consumers to stay up to date on their vaccinations and follow good hygiene practices by frequently washing their hands with soap and water.”
Dr. Stone noted, “No matter how much you sanitize a room’s surfaces, it is all undone by the simple act of an infected person exhaling, sneezing or coughing harmful viruses or bacteria that can be inhaled and infect non-immune individuals. The CDC states that ‘Measles is so contagious that if one person has it, 90% of the people close to that person who are not immune will also become infected. Infected people can spread measles to others from four days before through four days after the rash appears. The Rx3000 very efficiently inactivates airborne pathogens to reduce risk of infection.”
Additional Rx3000 features include:
• Patented 5-stage HEPA filtration design
• Germicidal ultraviolet irradiation system
• Virtually maintenance-free, with ultra quiet design
• Operator-friendly controls with easy portability
• HEPA and pre-filter changes in seconds
In previous measles outbreaks, hospitals looked to the Rx3000 for its UV light technology, which has been proven as an effective hospital infection control technology, as seen in the attached news clip: https://abcnews.go.com/WNT/video/measles-outb...on=4765066
More information on Rx3000 and consumer RxAir UV Light Air Purifiers is available at www.RxAir.com, 1 866.674.5238, jrotman@vytex.com
About RxAir
RxAir promotes a healthy lifestyle through the use of its innovative, patented ViraTech air purification technology, thereby improving the quality of life of each and every customer. Independently tested by EPA- and FDA-certified laboratories, the RxAir has been proven to destroy greater than 99% of bacteria and viruses and reduce concentrations of odors and VOCs. The RxAir uses high-intensity germicidal UV lamps that destroy bacteria and viruses instead of just trapping them, setting it apart from ordinary air filtration units. RxAir® and ViraTech ® are registered trademarks of UV Flu Technologies, Inc. For more information, visit http://www.RxAir.com
About Vystar Corporation:
Based in Worcester, Mass., Vystar® Corp. (OTC Pink: VYST) is the exclusive creator of Vytex Natural Rubber Latex (NRL), a multi-patented, all-natural, raw material that contains significantly reduced levels of the proteins found in natural rubber latex and can be used in over 40,000 products, and the owner of RxAir UV light air purification products. Vytex NRL is a 100% renewable resource, environmentally safe, "green" and fully biodegradable. Vystar is working with manufacturers across a broad range of consumer and medical products bringing Vytex NRL to market in adhesives, gloves, balloons, condoms, other medical devices and natural rubber latex foam mattresses, toppers, and pillows. For more information, visit www.vytex.com.
Contacts:
Media: Julie Shepherd, Accentuate PR, 847 275 3643, Julie@accentuatepr.com
Investors: Steven Rotman, Vystar CEO, 508-791-9114, srotman@vytex.com
VYST & their Fluid Energy Conversion acquisition:
Quote:
https://investorshub.advfn.com/boards/read_ms...=146201900
Fluid energy conversion is based around the technology called the Hughes Reactor. Nathanial Hughes is the inventor. He referenced me to the movie we all know called Top Gun. The part when they showed the plane engine when there was a cone in the middle with the flames coming out of the sides... that’s this device. With this technology, he told me to think about a tube with a cone inside it and there’s a one-way air value to where air bubbles come in and pop. So then air, water, and gas hits the cones, it creates mini little tornadoes, then the air bubbles pop to now really what we have is sonic cavitation. They can do, from an air purification standpoint, some huge things, which is why they were acquired.
http://www.fluidenergyconversion.com/
Here’s the patent for the Fluid Energy Hughes Reactor technology above:
https://patents.google.com/patent/US7897121
v/r
Sterling
The company informed myself and many others that called them that they are going to acquire 100% of Rotmans Furniture as indicated per their 8-K filed with the SEC below and that Rotmans is generating over $35 Million in Revenues with a 48% to 52% Gross Profit Margin and a 19% Net Profit Margin:
Quote:
https://www.sec.gov/Archives/edgar/data/13080...093018.htm
Within this post, the primary objective is to show investors how I believe the Rotmans and their Board of Directors (BOD) are viewing things to justify why they believe VYST can get to trading on the NASDAQ without ever needing to do a reverse split. However, there are quite a few other topics that I will discuss that I have seen others post about that believe are important too.
The share buyback is important, but like I stated before, the acquisition of Rotmans is what’s most important because that is what’s going to bring ”immediate” value to their financials, the company, and their stock that will position VYST to meet NASDAQ qualifications to trade on the NASDAQ.
The 250 Million share buyback was announced a while back when the stock was trading at much cheaper prices. That amount was announced based on an initial budget that was approved to be used to execute the share buyback program. In my opinion, I think the company was expecting to buy back shares in the .01 to .015 range. With the stock trading higher, and trading much thinner, and since the price is probably going to be 5 to 10 times or so higher when the buyback starts, I would suspect that the company will be able to buyback 5 to 10 times less than the amount from that up to 250,000,000 shares that they stated. I think they were maybe suspecting that such price increases ”could” happen which is why they stated ”up to” the 250 Million shares as a best-case scenario.
So, I believe that the company will be able to buyback anywhere from 25 million shares to 50 million shares. This means that with the Outstanding Shares (OS) roughly being around 500,000,000 shares per what they had PR-ed, I think it’s fair to use the Substitution Property to replace the variable of 250 Million shares for the OS from previous valuations I posted to be as a worst-case scenario, roughly 500 million shares to simply remain constant. If in the future a more finite number exists, then once again, use the Substitution Property to replace the OS variable.
Important to note, VYST has $31,319,398 available to be used as a 2 year carry back and 20 year carry forward Tax Net Operating Loss (NOL) to reduce the taxable income for the company’s future tax years. This is why VYST is such an attractable merger candidate. This is very important because this is what will help the company to trade at levels to meet the NASDAQ share price requirement of having a minimum $4.00 per share bid for 30 consecutive days. VYST will only need to maximize the Tax NOL by carrying it forward for one year since this current one-year time frame is the most important to graduate VYST to the NASDAQ. That means that the $31,319,398 will all be applied to the financials of VYST for the one-year time frame to have $31,319,398 applied to its coming year profitable Income Statement after completing the acquisition of Rotmans.
I explained the Tax NOL in much greater detail within the post below:
https://investorshub.advfn.com/boards/read_ms...=146107541
$31,319,398 = Tax NOL One Year Carry Forward
Consider the VYST valuation below with using 500,000,000 shares for the Outstanding Shares (OS) derived from using the fundamental formulas below so that all may understand:
Revenues x Gross/Net Profit Margin = Gross/Net Income
Gross/Net Income + Tax NOL = Adjusted Gross/Net Income
Adjusted Gross/Net Income ÷ Outstanding Shares (OS) = Earnings Per Share (EPS)
EPS x Price to Earnings (PE) Ratio = VYST Share Price Valuation
Before I get to the share price valuation parts, I think it’s important for all to understand why I have decided to use the Price to Earnings (PE) Ratio to determine the valuations. From my conversation with the company, the company believes that the PE Ratio is higher than 20 for its growth rate. After doing further research, I believe they are correct. When analysts talk about the PE Ratio, they commonly refer to the trailing PE which is why such is what I will use for the purpose of deriving this valuation as such logic is further explained in the link below:
https://www.investopedia.com/ask/answers/0501...ing-pe.asp
The PE Ratio is important because to get the Fundamental Valuation to consider for where VYST could exist to trade compared to the other stocks within its Industry, we must multiply the learned Earnings Per Share (EPS) by the PE Ratio for its Industry. The links below should help to better understand the PE Ratio logic as being the growth rate to help assess the fundamental valuation of a stock:
http://investorshub.advfn.com/boards/read_msg...d=57154170
http://www.investopedia.com/terms/p/price-earningsratio.asp
After the acquisition, it will be fair to consider that VYST will exist to trade within the Furniture Industry. Confirmed from the link below, the trailing PE Ratio for the Furniture Industry is 36.53:
http://pages.stern.nyu.edu/~adamodar/New_Home...edata.html
To get where a stock should fundamentally trade, as I had indicated within the formulas above, you must multiply the EPS by the PE Ratio for the Industry for which the stock would trade. Consider below…
From these variables, we can derive the Fundamental Valuation as indicated below from two different models: Gross Profit Margin Model and the Net Profit Margin Model:
Gross Profit Margin Model
The company informed me that from the over $35 million in Revenues coming in from the Rotmans acquisition, they have a 48% to 52% Gross Profit Margin. I will use the 48% to remain conservative. Consider below to derive an Earnings Per Share (EPS):
$35,000,000 Revenues x .48 Gross Profit Margin = $16,800,000 Gross Income
$16,800,000 Gross Income + $31,319,398 Tax NOL = $48,119,398 Adjusted Gross Income
$48,119,398 Adjusted Gross Income ÷ 500,000,000 (OS) = .0962 EPS
.0962 EPS x 36.53 PE Ratio = $3.51 Per Share Gross Valuation
Net Profit Margin Model
The company informed me that from the over $35 million in Revenues coming in from the Rotmans acquisition, they have a 19% Net Profit Margin. Consider below to derive an Earnings Per Share (EPS):
$35,000,000 Revenues x .19 Net Profit Margin = $6,650,000 Net Income
$6,650,000 Net Income + $31,319,398 Tax NOL = $37,969,398 Adjusted Net Income
$37,969,398 Adjusted Net Income ÷ 500,000,000 (OS) = .0759 EPS
.0759 EPS x 36.53 PE Ratio = $2.77 Per Share Net Valuation
The company told me that FINRA will likely have them roll Rotmans’ financials up into VYST as the financials for moving forward because of how huge the acquisition would be for VYST. I was informed that they are prepared to roll 3 years worth of audited financials up into VYST to consummate the acquisition. This is why from the earlier VYST news released, it was indicated how they are making VYST debt free in preparation for the acquisition.
Regarding the $1.5 Million & $2.6 Million Long Term Debt Paid
Within the PR below, pay close attention to where it says... CMA Investments, LLC and its guarantors accepted 15M shares of restricted Vystar common stock as payment for the principal and interest on the decade-old loan.
This is a huge show of confidence that leads me to think that they believe that such 15 Million shares are considered at a discount to where they still would make money off of their shares for knowing what is coming. Think about it...
$1,500,000 Debt ÷ 15,000,000 Restricted Shares = .10 Per Share
This means that they were willing to accept 15,000,000 of VYST Restricted Shares at .10 per share to pay off $1.5 Million in Debt. Maybe it's me, but this leads me to believe that whatever they learned to accept such a payoff in VYST Restricted Shares, is going to take the price far higher than .10 per share. Read the PR below:
Quote:
https://seekingalpha.com/news/3370252-vystar-...-debt-1_5m
Vystar pays off long-term debt of $1.5M
Jul. 16, 2018 9:02 AM ET|About: Vystar Corp. (VYST)|By: Niloofer Shaikh, SA News Editor
Vystar Corporation (OTCPK:VYST) has paid off $1.5 M in long-term debt, for a total reduction in long-term debt of $2.6M this year.
CMA Investments, LLC and its guarantors accepted 15M shares of restricted Vystar common stock as payment for the principal and interest on the decade-old loan.
Stated Steve Rotman, CEO of Vystar, “Vystar is now totally free of long-term debt and liens. This helps clean up our balance sheet and enables a fresh start as we execute our strategic plan that includes further acquisitions, expanding the Vytex distribution network, development of new Vytex formulations, and development and launch of new product lines.”
Regarding the Share Buyback
As I had started explaining above, I believe as a worst-case scenario, VYST is only going to be able to buyback roughly around anywhere from 25 to 50 million shares. Of course, the best-case scenario would be buying back up to the 250 million shares as they had PR-ed, but the 250 Million share buyback was announced a while back when the stock was trading at much cheaper prices. I could be wrong, but I think the company was expecting to buy back shares in the .01 to .015 range. With the stock trading higher, and trading much thinner, and since the price is probably going to be 5 to 10 times or so higher when the buyback starts, I would suspect that the company will be able to buyback 5 to 10 times less than the amount from that ”up to” 250,000,000 shares that they stated. I think they were maybe suspecting such could happen which is why they stated ”up to” the 250 Million shares.
Some had asked… Why did they inform the public of the share buyback which would help the price to increase which forces them to buy back shares at a higher price? Well, VYST no doubt had to inform the public of their planned share buyback in order to be in compliance with the SEC Fair Disclosure Rules. With them knowing behind the scenes their plans of moving their company from a penny stock to successfully trading on the NASDAQ and not disclose such, could had posed an Insider trading problem. Having inside information is not illegal, but knowing their goals to get to the NASDAQ and buying back shares while not informing the public, could have been a significant violation of the SEC Fair Disclosure Rules. This is why such was PR-ed and why the company speaks to their shareholders. Heck, the story is so big, most would not believe it unless they called the company and speak to them themselves.
For those not believing that a penny stock could get to the NASDAQ without doing a reverse split, read the post below of which I provided two examples where those stocks had gone from pennies to over $30.00+ per share:
https://investorshub.advfn.com/boards/read_ms...=146554390
For inquiring minds, the buyback program was approved by their Board of Directors (BOD) to buy back ”up to” 250 million shares. Even though it was approved by their BOD, it hadn’t started yet. It was mentioned that the share buyback was going to be through Charles Schwab. Schwab decided not to do the share buyback for VYST because they believe it would be a conflict of interest issue because one of the Board of Directors for VYST has a very large account with Schwab already and have previously bought and still own shares of VYST as confirmed through earlier Form 4s filed with the SEC. I posted some details regarding these Form 4s and others within the posts below:
https://investorshub.advfn.com/boards/read_ms...=146094320
https://investorshub.advfn.com/boards/read_ms...=146488994
There is a chance that the person is going to be buying more shares and doing so would make Schwab uncomfortable. They are going through some other firms, but I don’t believe we will learn of any further details because I think the company believe that enough details are already out to the public regarding the share buyback.
They have a team of lawyers and other experienced people on board that are way smarter than me so I trust that they will figure it out. I do think that it’s sad that there are so many barriers in place to allow a company to do a legitimate buying back of their own shares to retire them to their Treasury, especially when it’s so easy for companies within the market to be allowed to sell shares. It should be the other way around. The rules should make it easier to buy back shares instead of being so easy for companies to dilute and sell shares to the market. Only my opinion on a side note, but the rules should not be making things so hard for VYST to buy back shares to retire them to their Treasury.
I could be wrong, but I think a subliminal hint that the share buyback will start will be when they file a Form 3: Initial Statement of Beneficial Ownership of Securities since it’s usually the first form filed before Insiders start to buy shares of a company before filing Form 4s:
https://www.investopedia.com/terms/f/form3.asp
I’m not sure about this regarding a ”company” versus ”Insiders” buying back shares because the rules regarding the Form 3 doesn’t mention such needing to be done if a ”company” is buying back shares. Since I’m not really sure of the rules in great detail and the rules don’t address such, the company could jump straight to filing Form 4s.
Here are some links that might be educational to some regarding the rules for doing a share buyback:
https://www.investopedia.com/terms/r/rule10b18.asp
https://www.sec.gov/divisions/marketreg/r10b18faq0504.htm
https://www.sec.gov/rules/final/33-8335.htm
Very important to note regarding the share buyback, I think investors should not get all fired up about the share buyback. That’s only a little cherry on top of the dessert. I would focus on the full course meal which is the acquisition of Rotmans coming into VYST because that’s what’s going to get VYST to the dollars and trading on the NASDAQ exchange. The share buyback, whether it eventually happens or not, is simply a good gesture. If for some reason it doesn’t happen, there is lots of proof that they tried. The most important thing as I had explained above is that with or without the share buyback, the valuation would still remain intact.
Regarding the Rotmans Furniture Acquisition/Merger
The company originally stated that they believe the acquisition/merger of Rotmans furniture into VYST would take place around mid-February time frame. Please understand, mid-February does not mean 15 February. The time frame of mid-February means anywhere from 15 Feb, but give or take a few days up or down from that daye. I was informed that they are prepared to roll 3 years worth of audited financials up into VYST to consummate the acquisition. Because this is the market and usually things are not on time or perfect, don’ be shocked if they come across minor delays. Please, this would not mean that the sky is falling. I saw the minor delays in these other stocks below, but those stocks still went from being a penny stock to trading on the NASDAQ and both trading over $30.00+ per share without ever doing a reverse split as indicated within the link below:
https://investorshub.advfn.com/boards/read_ms...=146554390
Also, important to note, the Rotmans Furniture store acquisition price is $4 million that will be bought with cash and stock. I think when I mentioned this earlier, I didn’t explain it in clear detail. The shares that will be used for the acquisition will be converted once the stock is trading in the dollars without the consideration of a reverse split. This is what their plans are based on what they believe.
However, if for some reason what they believe to happen doesn’t happen with VYST never reaching the dollars, then a small reverse split would be needed, but then the shares will only convert post reverse split price.
So, to close on this thought, the stock component just can’t convert unless VYST is in the dollars one way or the other. This means that the acquisition will be a lot less dilutive because of how high the price would be from the Rotmans acquisition which would require a smaller amount of shares needing to be used. They wanted to be overly fair, especially since the Insiders own over 75% of the company (based on the old OS) per what I was informed.
Regarding “Any” Possibility of a Reverse Split
I posted about this a little while back, but I think it needs to be addressed now. They are going to try to get to the NASDAQ without needing to ever do a reverse split. They have no plans of doing a reverse split. As I have indicated above, the acquisition of Rotmans, per their recent plans, could justify VYST for trading at a high of $3.51 per share through logical deduction. This is very close to being at the NASDAQ requirement of trading at a $4.00 minimum bid for 30 consecutive trading days. Because of basic ”Supply vs Demand” principles, it wouldn’t take much to maintain the $4.00 minimum bid for 30 consecutive trading days.
However, the company must be prepared to improvise to allow for flexibility if the stock gets to $1.00 and stalls or $2.00 and stalls or $3.00 and stalls. Then like I was told, then the company would be forced to do a very small ratio of a reverse split to meet the NASDAQ requirement of having a $4.00 minimum bid for 30 consecutive trading days. I was informed by the company that the only way that VYST would do a reverse split would be if they needed to do a small no higher than a 1-10 to meet NASDAQ requirement and that would take place if VYST only had gotten to a minimum of .50 per share. That would have VYST trading at $5.00 per share which is much higher than the NASDAQ requirement of having a $4.00 minimum bid for 30 consecutive trading days.
I think it’s important for all to understand that a reverse split was not submitted to FINRA. It was never approved to be executed by FINRA because VYST never submitted application to do the reverse split to FINRA to be approved. That's why you won't see one. The VYST 10-Q clearly stated that there was an approved Board Resolution from the majority shareholders and the Board of Directors to "authorize" a reverse stock split at a range from 1:5 through 1:50 anytime over the next 12 months "at the Board’s discretion" which means if they deem it fit to ever need one. This is exactly what I had explained within the posts below for why there was a good chance that we might not ever need one:
https://investorshub.advfn.com/boards/read_ms...=146540121
https://investorshub.advfn.com/boards/read_ms...=146915305
Here is the VYST 10-Q to read under NOTE 12 SUBSEQUENT EVENTS on Page 20:
https://www.sec.gov/Archives/edgar/data/13080...093018.htm
Please, I mean no disrespect, but anyone that's spooked about the possibility of a 1-10 ratio reverse split or lower to get to the NASDAQ, respectfully, has no experience about market logic and sound reasoning, but now is the time to learn. I'll take that any day all day with any stock that I am in and have ever been in if such a situation presented itself as it does here with VYST. Just think, if VYST gets to the $2.00 to $3.00 range, they would only need to do a very small ratio reverse split to ensure that VYST remains at or over $4.00 per share to meet the NASDAQ minimum bid requirement for 30 consecutive trading days.
Again, based on what I was informed by the company, they believe they will not need to do a reverse split. However, they will not let their goals of getting to the NASDAQ be extinguished because of not doing one if at such time it is needed. This is why such was worded as it was within their 10-Q as I indicated and explained above. I was told that "IF" such is the case, VYST would announce the small ratio reverse split at the same time of announcing their application submission to trade on the NASDAQ.
Very important to note, the company told me that they would make sure that the NASDAQ submission would be filed for investors to confirm at the same time of any reverse split "IF" a reverse split is ever needed because they would not want investors to think that they would be executing any reverse split for the negative norms that exists with stocks that have done reverse splits before in the market. They are very aware of this. I was told that if they never submit their application to the NASDAQ, they will never do a reverse split… PERIOD. This is how confident they are about getting to the NASDAQ.
Anyone with concerns about a reverse split, this is where you learn that even though most reverse splits are bad and are for negative reasons, there are a few times to where they are for positive reasons and again, that’s ”IF” they ever need to do one.
Here's a good example of a stock that I was in that had done a small ratio reverse split. Look at what happened with INTV as a better stock to "compare and contrast" how a stock with substance reacts after doing a small ratio reverse split. INTV had done a small 1-50 reverse split. The pre-split price was .001 and the post-split price was .05 per share. Later after their small 1-50 reverse split, INTV ran from .05 to $6.74 per share.
Here on Nov 27, 2017, I created a valuation post stating that INTV would be worth $5.42 per share:
https://investorshub.advfn.com/boards/read_ms...=136448710
Later on Dec 18, 2017, INTV ran to $6.74 per share with 4,884,032 shares in volume for that day:
https://ih.advfn.com/stock-market/USOTC/integ...rical-data
I will tell you, no offense to INTV, but VYST has far more going on than INTV since the acquisition coming into VYST is going to bring over $35 Million in Revenues and is very profitable. I remember back during the INTV days, I was really trying to tell investors to fully understand the magnitude of what was transpiring and to "not" stereotype INTV with its ”low ratio” reverse split to be of the norm with those other stocks that had done the ”high ratio” reverse splits. Heck, since I'm more wrong than being right within this tough market, some ignored my thoughts then and I truly understood why. I will say that the situation here with VYST is far better and what's happening here should not be ignored. I really think all should really dig in and research the growth that is transpiring here with VYST.
Regarding the Name, Ticker, and CUSIP# Changes
Some were wondering… "Would a CUSIP change make the short shares have to cover?"
For inquiring minds, the CUSIP # is like the SSAN for a stock. All stocks have one.
The first time that I posted this info below was on Saturday, 02/03/07 at 05:18:23 AM:
https://investorshub.advfn.com/boards/read_ms...d=16749882
I posted some better-looking versions a few more times years afterwards, but below is my conversation I had with the CUSIP Service Bureau …
I think it is important to understand what you are about to read below regarding the CUSIP# and name change for VYST which is an important piece that I believe will help to create a covering of any Short or Naked Short (fails to deliver) positions that "might" exist in VYST. I haven't really researched VYST in detail to confirm if there is any Short or Naked Short positions, but if I had to guess, there probably are some positions of such.
Please understand, VYST is not some "short covering" play or stock, but if there is any kind of short positions in VYST, it will help catapult the price to some significant highs because those guilty will be forced to cover based on all of the legitimate things that VYST is doing. I wasn't ever going to bring this up here within the forum, but since you did, I will address such with my thoughts.
The name of the guy I spoke to was Vinnie. In my earlier posts, I think I spelled his name wrong since I'm just now noticing that it's actually spelled as "Vinny" from how it's spelled on the CUSIP Bureau website that's now called the CUSIP Global Services:
https://www.cusip.com/cusip/contact-us.htm
For those just learning about this for the first time, what you are about to now read is a revision of a post that I had done a few years ago that might be of some use here for VYST, but I will spell his name right this time:
Quote:
A few years ago, I called the CUSIP Service Bureau at 212-438-6565 and spoke to a few people and kept the notes from my conversation. I finally landed at speaking with a guy by the name of Vinny. Please forgive my redundancy for posting this if it has already been thoroughly discussed. Pay particular attention to what's in bold below. The above phone number is from the link(s) below:
http://www.cusip.com/
https://www.cusip.com/cusip/contact-us.htm
https://www.bloomberg.com/research/stocks/pri...Id=7702188
Vinny informed me that a CUSIP change "usually" comes with a name change, but not always. He stated that a name change will "always" come with a CUSIP# change though. He told me that the "name change" and the "CUSIP# change" starts with the company's Transfer Agent (TA) coordinating electronically with the CUSIP Service Bureau by linking the company's name and address. Then the CUSIP Service Bureau Coordinates with the Depository Trust Company (DTC).
The DTC will serve as the overseer to coordinate with whomever as deemed necessary. Sometimes the TA will coordinate with the DTC too for certain confirmations or transactions as deemed necessary. The DTC makes sure there is proper share accountability for proper dissemination into our brokerage accounts. This is all done electronically.
After the company/TA receives their new CUSIP# from the CUSIP Service Bureau, the company/TA (& legal team) then coordinates with the NASDAQ/NASD/FINRA and SEC for the already coordinated amount of shares as the new inventory. The company/TA will then coordinate with the DTC to confirm the amount of shares and other key info.
After accountability is confirmed by the DTC, the DTC then authorizes the brokerage companies to change all old CUSIP numbers to the new CUSIP numbers electronically within our brokerage accounts. A CUSIP# change is not enough from what most believe throughout the investing/trading community to force a covering of a naked shorted position in my opinion.
Personally, I think some companies don't fully understand why it is important to do a "name change" and "CUSIP# change" if you are trying to force a covering of a naked shorted company. A ticker change wouldn't hurt either although the guy informed me that he is not knowledgeable about ticker changes as that coordination goes through the NASDAQ/NASD/FINRA and SEC with the company's legal team.
Vinny, from the CUSIP Service Bureau, explained it to me as when stock 1234 changes its name and CUSP# to stock 5678, the shares of stock 5678 are given to them electronically by the TA to replace stock 1234. This is the key transaction. If only a CUSIP# change transpires then a lesser type of accountability takes place. The name change matching the address of the company is what actually forces an exchange of the "old inventory" of shares to the "new inventory" of shares. Without the name change, there is NOT a "movement of shares" or a "physical accounting of shares" from the TA that takes place.
Only one phase of the accountability process is required to take place to verify accountability when only a CUSIP# change transpires because of the lack of not having a creation of the "new inventory" of shares by the company/TA. Therefore no movement of shares takes place. This is a simple misunderstanding by many companies, but if not considered, it could be the difference for any type of forced covering of any naked shorted positions.
If there is NO DILUTION, a covering of the naked shorted positions should take place due to what's revealed during the accountability process between the DTC after getting the "new inventory" of shares from the CUSIP Service Bureau if there is not only a CUSIP# change, but a name change too.
Because of the CUSIP# change, the MMs will be required to account for each of the old shares with the new shares. Because of the name change, it's important because it forces the DTC to play a more finite role by not only accounting for the old shares to equal the new shares electronically, but forces them to match a "new inventory" of shares that have been given to them from the CUSIP Service Bureau as the new official/approved inventory by way of the shares given from the company/TA.
Please understand, I haven't really researched if there is an existing Short or Naked Short position here in VYST (edited for this post). However, if such does exists, hopefully this information helps investors/traders to have a better understanding as to the importance of not just a CUSIP# change, but a name change too and how such should culminate with a substantial price increase considering where VYST (edited for this post) is trading. I am confident that we are in good hands regardless.
So the next time someone mentions something to you regarding unsettled shares that was not delivered after the three day settlement requirement because of a ”fail to deliver” taking place, hopefully some of the thoughts within this post will help with providing a basic understanding.
For those who are new to understanding Naked Shorting, below are some old notes I have of some links of information that might help:
Dark Side of the Looking Glass: Part 1
http://www.youtube.com/watch?v=gpWzOjB8qtU
Dark Side of the Looking Glass: Part 2
http://www.youtube.com/watch?v=k1G-FW8_vn8&am...ure=relmfu
Dark Side of the Looking Glass: Part 3
http://www.youtube.com/watch?v=bKEAE42cDbk&am...ure=relmfu
Dark Side of the Looking Glass: Part 4
http://www.youtube.com/watch?v=ufythzV9tA0&am...ure=relmfu
Dark Side of the Looking Glass: Part 5
http://www.youtube.com/watch?v=JKc0KQvvfWE&am...ure=relmfu
Dark Side of the Looking Glass: Part 6
http://www.youtube.com/watch?v=bXhs4UZgOsg&am...ure=relmfu
Dark Side of the Looking Glass: Part 7
http://www.youtube.com/watch?v=HM1289oaoqI&am...ure=relmfu
Dark Side of the Looking Glass: Part 8
http://www.youtube.com/watch?v=yVvWZv0JVm8&am...ure=relmfu
Dark Side of the Looking Glass: Part 9
http://www.youtube.com/watch?v=ImU_WTlZ-zA&am...ure=relmfu
Robert Shapiro discusses naked short selling on CNBC:
http://cdn2.overstock.com/06-0223_RShapiro_CNBC_NSS.wmv
Hearing of the Senate Banking, Housing and Urban Affairs Committee - The State of the United States Economy and Financial Markets
Statement
By: Bob Bennett
Date: Feb. 14, 2008
Location: Washington, DC
BREAK IN TRANSCRIPT
http://votesmart.org/public-statement/319339/...KUeMPnxr4M
Read below to see that VYST is going to have yet still much more going on within the company operationally to include the Rotmans acquisition.
** The company informed me that they are going to acquire 100% of Rotmans.
** Rotmans Furniture has won Retailer of the Year three out of the last five years running.
** Currently, Rotmans is 280,000 square feet with just shy of 200 employees.
Quote:
https://www.rotmans.com/
https://www.youtube.com/user/rotmansfc
Video Confirming over $35+ Million in Revenues by Rotmans Furniture Store
https://www.youtube.com/watch?v=I6YPzlqFWUg
https://www.youtube.com/watch?v=TXD-6Fp67kU
https://www.bloomberg.com/quote/VYST:US
About Vystar Corp (VYST)
Vystar Corp. creates natural rubber latex. The Company's product is used in an extensive range of products including balloons, textiles, footwear and clothing (threads), adhesives, foams, furniture, carpet, paints, coatings, protective equipment, sporting equipment, and especially health care products such as condoms, surgical and exam gloves.
Quote:
https://www.vystarcorp.com/
Quote:
https://www.vytex.com/
https://www.amazon.com/s/ref=nb_sb_ss_i_8_6?u...4GGCJEMNW7
Vystar Vytex on New To The Street 4/30/2017
https://www.vytex.com/blog/category/videos/
https://www.youtube.com/watch?time_continue=4...GbuFFA9vJw
Vystar Vytex New To The Street 3/20/2017
https://www.vytex.com/blog/category/videos/
https://www.youtube.com/watch?v=HEMziQw0LpU
Quote:
https://www.rxair.com/
VYST ABC World News Confirmation of Rx3000, RxAir™
The VYST Rx3000, RxAir™ has been confirmed as a viable product on ABC World News below and is used in over 400 hospitals and is FDA-cleared as a Class II Medical Device:
(Go to the 53 seconds time stamp within the video below.)
Quote:
https://abcnews.go.com/WNT/video/california-m...s-23135787
http://globenewswire.com/NewsRoom/AttachmentN...26a9a6c/en
Per the news today, the VYST Rx3000, RxAir™ has started production again and combines powerful germicidal ultraviolet (UV) light with a patented 5-stage HEPA filtration proven in independent EPA- and FDA-certified laboratory testing to destroy on first pass over 99.97% of airborne viruses, bacteria and other contaminants. Here's the news below for those who have not read it yet in its entirety:
Quote:
http://www.globenewswire.com/news-release/201...ities.html
Vystar to Resume Production of Rx3000 UV Light Air Purifiers for Use in Hospitals, Healthcare Facilities
• Destroys on first pass more than 99.97% of harmful airborne viruses and bacteria.
• Inactivates pathogens that cause measles, the common cold, MRSA (staph), whooping cough, TB, pneumonia and other antibiotic-resistant and viral infections.
WORCESTER, Mass., Feb. 07, 2019 (GLOBE NEWSWIRE) -- Vystar Corp. (OTC: VYST) is resuming production of the Rx3000™, a hybrid air purifier designed by biomedical engineers specifically for hospitals. The Rx3000 combines powerful germicidal ultraviolet (UV) light with a patented 5-stage HEPA filtration proven in independent EPA- and FDA-certified laboratory testing to destroy on first pass over 99.97% of airborne viruses, bacteria and other contaminants. Vystar acquired the assets and patented intellectual property related to the Rx3000, RxAir™, custom filtration and other UV light air purification technologies from UV Flu Technologies in 2018 after production had stopped.
Rx3000 is used in over 400 hospitals and is FDA-cleared as a Class II Medical Device. Priced at less than $5,000 per unit to service a 1,500 – 3,000 sq. ft. area, Rx3000 is very cost effective. Vystar also acquired all of the equipment necessary to make the custom filters used in the Rx3000. These large multi-stage filters retail for approximately $800 and last up to 1 year, depending on use. Vystar expects the first new Rx3000 units will be available to hospitals in the second quarter of 2019 via Vystar’s medical distribution network partners.
“Measles, influenza, strep, MRSA (staph), pneumonia, tuberculosis and other airborne illnesses are a major concern for hospitals and healthcare facilities year round,” stated Bryan Stone, MD, Internal Medicine and Nephrology, Chief of Medicine for Desert Regional Medical Center, and expert consultant for medical application and technology development. “We believe it is important that hospitals have access to the Rx3000 technology that helps reduce risk of infection from airborne antibiotic-resistant viruses and bacteria. We also encourage consumers to stay up to date on their vaccinations and follow good hygiene practices by frequently washing their hands with soap and water.”
Dr. Stone noted, “No matter how much you sanitize a room’s surfaces, it is all undone by the simple act of an infected person exhaling, sneezing or coughing harmful viruses or bacteria that can be inhaled and infect non-immune individuals. The CDC states that ‘Measles is so contagious that if one person has it, 90% of the people close to that person who are not immune will also become infected. Infected people can spread measles to others from four days before through four days after the rash appears. The Rx3000 very efficiently inactivates airborne pathogens to reduce risk of infection.”
Additional Rx3000 features include:
• Patented 5-stage HEPA filtration design
• Germicidal ultraviolet irradiation system
• Virtually maintenance-free, with ultra quiet design
• Operator-friendly controls with easy portability
• HEPA and pre-filter changes in seconds
In previous measles outbreaks, hospitals looked to the Rx3000 for its UV light technology, which has been proven as an effective hospital infection control technology, as seen in the attached news clip: https://abcnews.go.com/WNT/video/measles-outb...on=4765066
More information on Rx3000 and consumer RxAir UV Light Air Purifiers is available at www.RxAir.com, 1 866.674.5238, jrotman@vytex.com
About RxAir
RxAir promotes a healthy lifestyle through the use of its innovative, patented ViraTech air purification technology, thereby improving the quality of life of each and every customer. Independently tested by EPA- and FDA-certified laboratories, the RxAir has been proven to destroy greater than 99% of bacteria and viruses and reduce concentrations of odors and VOCs. The RxAir uses high-intensity germicidal UV lamps that destroy bacteria and viruses instead of just trapping them, setting it apart from ordinary air filtration units. RxAir® and ViraTech ® are registered trademarks of UV Flu Technologies, Inc. For more information, visit http://www.RxAir.com
About Vystar Corporation:
Based in Worcester, Mass., Vystar® Corp. (OTC Pink: VYST) is the exclusive creator of Vytex Natural Rubber Latex (NRL), a multi-patented, all-natural, raw material that contains significantly reduced levels of the proteins found in natural rubber latex and can be used in over 40,000 products, and the owner of RxAir UV light air purification products. Vytex NRL is a 100% renewable resource, environmentally safe, "green" and fully biodegradable. Vystar is working with manufacturers across a broad range of consumer and medical products bringing Vytex NRL to market in adhesives, gloves, balloons, condoms, other medical devices and natural rubber latex foam mattresses, toppers, and pillows. For more information, visit www.vytex.com.
Contacts:
Media: Julie Shepherd, Accentuate PR, 847 275 3643, Julie@accentuatepr.com
Investors: Steven Rotman, Vystar CEO, 508-791-9114, srotman@vytex.com
VYST & their Fluid Energy Conversion acquisition:
Quote:
https://investorshub.advfn.com/boards/read_ms...=146201900
Fluid energy conversion is based around the technology called the Hughes Reactor. Nathanial Hughes is the inventor. He referenced me to the movie we all know called Top Gun. The part when they showed the plane engine when there was a cone in the middle with the flames coming out of the sides... that’s this device. With this technology, he told me to think about a tube with a cone inside it and there’s a one-way air value to where air bubbles come in and pop. So then air, water, and gas hits the cones, it creates mini little tornadoes, then the air bubbles pop to now really what we have is sonic cavitation. They can do, from an air purification standpoint, some huge things, which is why they were acquired.
http://www.fluidenergyconversion.com/
Here’s the patent for the Fluid Energy Hughes Reactor technology above:
https://patents.google.com/patent/US7897121
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