A 200% spike from all-time lows is a development that continues to shine a light on Vystar Corp (OTCMKTS:VYST) after a period of subdued activity. The rally has come on the company announcing plans to carry out a buyback of its shares. In addition, the company continues to elicit strong investor interest on confirming plans to maintain a clean balance sheet with the elimination of unnecessary convertible debt.
Vystar Corp Price Analysis
The company has also taken the market by storm on unveiling latex mattresses in three levels of support, as it moves to pursue opportunities in the $30 billion mattress industry. It thus does not come as a surprise that the stock has started climbing the ladder, after shedding a significant amount of market share over the last two years.
After the recent spike high, the stock is staring at a key resistance level at the $0.04 handle. A rally followed by a close above the critical resistance level should affirm the emerging uptrend as the stock would have turned bullish.
Above the $0.04 mark, Vystar Corp would be on its way to one-year highs of $0.08 level. Conversely, below the $0.04 mark, Vystar Corporation remains susceptible to further drops given that short sellers remain in firm control.
If investor reaction to recent developments is anything to go by, then Vystar Corporation looks set to continue powering higher.
About Vystar Corp
Vystar Corporation casts itself as an exclusive creator and manufacturer of Vytex Natural Rubber Latex. The company manufactures and sales rubber and rubber products across the United States. It also owns a proprietary technology for the production of Vytex NRL used to reduce antigenic protein.
Why is Vystar Corp Rallying?
Vystar Corporation started spiking after announcing plans to buy back up to 250 million shares of its stock, as a way of reducing over dilution in the market. In addition, the company has paid off a $105,000 convertible note as part of a drive that seeks to limit over dilution.
The company remains with two convertible notes with face values of $50,000 and $100,000. The company can only convert the $50,000 starting February 22, 2019. The $100,000 note on the hand does not allow conversion until April.
“Vystar’s Board of Directors felt that the convertible debt artificially lowered Vystar’s share price and, at the current share price, it was in the best interest of all shareholders to authorize a buyback and return the shares to Vystar’s treasury,” stated Steve Rotman, CEO of Vystar.
Paying off debt is part of the company’s push to maintain a clean balance sheet. The company intends to focus on acquisitions in 2019 as part of its new business strategy.
In addition to the debt and stock buyback drive, Vystar Corporation has moved to strengthen its product pipeline as it seeks to strengthen its revenue base. The company has since unveiled a new set of Vytex Cloud Bed-in-a-Box.
The new mattresses opens the door for the company to target the multibillion-mattress industry that grew by 60% in 2017. The Company is planning to conduct online sales as a way of catering to the needs of customers who wish to enjoy door delivery.
“We applied our expertise gained from decades of direct interactions with hundreds of thousands of New England consumers at Rotman Furniture to help develop the high-quality Vytex® Cloud Bed-in-a-Box with the convenience of online ordering and fast delivery right to your door,” said Mr. Rotman.
What Next For Vystar Corporation
Vystar Corporation is showing signs of breaking out after a long period of underperformance. The stock has already turned bullish if a 200% spike from all-time lows is anything to go by. Clearing of toxic debt, as well as the implementation of a buyback program, are some of the development that affirms the company’s commitment to generating and delivering shareholder value.
In addition to focusing on maintaining a clean balance sheet, the company has also moved to strengthen its product line as it seeks to strengthen its revenue streams. The unveiling of a new set of mattresses early in the year affirms the company’s revenue generation ambitions.
After a long period of underperformance amidst growth concerns, Vystar Corp could as well be on the cusp of breaking out. The stock’s run could just be getting started.
We will be updating our subscribers as soon as we know more. For the latest updates on VYST, sign up below!
Disclosure: We have no position in VYST and have not been compensated for this article.