VYSTAR CORPORATION (OTCMKTS:VYST) Files An 8-K Entry into a Material Definitive AgreementItem 1.01.
Vystar Corporation (the “Company”) entered into a Loan Payoff and Share Payment Agreement (the “Agreement”) on July 10, 2018. The Company had borrowed approximately $1,500,000 (the “Company Loan”) from CMA Investments, LLC (a related party) (the “Lender”) to several promissory notes. The Lender made the loans by using proceeds from a loan through Atlantic Capital Bank (the “ACB Loan”). In lieu of cash, the Company has paid the Lender 15,000,000 shares of restricted common stock (the “Shares”), which based on closing price on June 10, 2018 of $0.034 is equal to $510,000, provided that the Company continue to pay interest on the ACB Loan on Lender’s behalf for a six-month period. The certificate representing the Shares will be delivered to an escrow agent. After six months, the Escrow Agent is authorized to sell the Shares at a price of no less than $0.035 per share with a targeted date to complete sales of July 1, 2022. The Company shall be required to pay any shortfall between the proceeds Lender receives on the sale of the Shares and the total principal outstanding on the Company Loan at the settlement date. In the event of a surplus, the Company shall be authorized to repurchase the remaining Shares at par value. The Agreement is attached hereto as Exhibit 10.1.
| Item 3.02. | Unregistered Sale of Equity Securities. |
The description set forth in Item 1.01 is incorporated herein by reference.
| Exhibit Number | Description |
| 10.1 | Loan Payoff and Share Payment Agreement dated July 10, 2018 |
| 99.1 | Press Release |
Vystar Corp ExhibitEX-10.1 2 ex10-1.htm LOAN PAYOFF AND SHARE PAYMENT AGREEMENT VYSTAR CORPORATION 8-K Exhibit 10.1 LOAN PAYOFF AND SHARE PAYMENT AGREEMENT This LOAN PAYOFF AND SHARE PAYMENT AGREEMENT (“Agreement”) is made this 10TH day of July 2018,…To view the full exhibit click here
About VYSTAR CORPORATION (OTCMKTS:VYST)
Vystar Corporation is the creator and owner of the technology to produce Vytex Natural Rubber Latex (NRL). The Company’s technology reduces antigenic protein and non-rubbers in natural rubber latex to undetectable levels. The Company operates in two segments: Vytex Division and Kiron Division. The Vytex Division is focused on expanding the licensing and utilization of its source natural rubber latex technology. Its Kiron Division provides sleep medicine services, including clinical and diagnostic. The Company’s products and services include Natural Rubber Latex, and Clinical Sleep Diagnostics and Durable Medical Equipment. Its product portfolio includes Vytex NRL in high ammonia (HA) and low ammonia (LA) formulations. Vytex NRL is produced at the latex processor level and can be integrated into the processing environments. Vytex NRL is produced at the latex processor level and can be integrated into various processing environments.
