Vystar, Vietnamese latex foam producer entre partnership - draft

Atlanta, Georgia — Vystar Corp., producer of Vytex hypoallergenic natural rubber latex, has formed a strategic partnership with Vietnamese latex foam producer Lien 'A for the worldwide development, production and distribution of natural rubber latex bedding and furniture products.

Also, Vystar has received from Indonesia its 11th international patent protecting its proprietary latex deproteinization process for the production of natural rubber latex.

Over the past year, Lien 'A CEO Lam Ngoc Minh took significant equity positions in Vystar and in NHS Holdings LLC, Vystar's exclusive distributor for Vytex foam, according to a 1 June press release from Vystar.

Vystar and Lien 'A exhibited together 7-8 June at the Home Furnishings Manufacturing Solutions Expo in Atlanta, according to Vystar CEO William Doyle. Furniture manufacturers attending the expo were enthusiastic about the new partnership, Doyle said in a telephone conversation from the expo.

"The new partnership strengthens both of us," he said. It allows Vystar and Lien 'A to expand their distribution, to make direct shipments of latex and foam to customers, and to ship foam samples to furniture manufacturers for testing, he said.

Besides moving into more local warehouses, Vystar also will have access to Lien 'A's warehouses in Worcester, Massachusetts, and the Los Angeles area, according to Doyle.

According to the press release, Vytex and NHS are working with Lien 'A to build and manage relationships with mattress and pillow manufacturers who will use Vytex foam cores produced by Lien 'A for bedding products that will be sold throughout the Americas.

The two companies will distribute those foam cores from the Worcester and Los Angeles warehouses to enable fast and efficient delivery worldwide, Vystar said.

Minh is one of a core group of investors who have invested $20 million in Vystar since its inception, the company said. Vytex has potential applications in more than 40,000 products, including medical products as well as bedding and furniture, it said.

The strategic partnership also allows Vystar and Lien 'A to collaborate on research and development to meet the special needs of various foam buyers, according to Doyle.

"Solid pillows? Solid cores? Aerated foam? The new R&D program will allow us to do all of that, as well as other things," he said.

Doyle said he wasn't at liberty to discuss some of the new products that are under development. He did say, however, that the strategic partnership opens the door to major expansions for both companies.

"We have production in Thailand and Vietnam, and we're adding on Guatemala," he said. "We also have plans to expand further in Southeast Asia."

The notice of allowance of a patent in Indonesia is at the core of Vystar's production expansion, according to Doyle. This marks the fourth major notice of allowance the company has received this year from NR-producing countries, he said. The notices from Malaysia, Guatemala and India were announced in April.

Previously, Vystar obtained notices of allowance from China, Japan, Hong Kong, Germany, Austria, Ireland and the United Kingdom, according to Doyle. These are all major latex product manufacturing countries, he said, and affirming Vystar's patents in those countries were essential to the company's future growth.

Besides being virtually allergen-free, Vytex natural rubber latex is odor-free, sustainably sourced and completely biodegradable, in sharp contrast with synthetic rubber gloves, the company said.