Vystar Corp., the Worcester parent company for Rotmans Furniture and Flooring, announced on Thursday its board of directors has approved preliminary plans to spin-off the RxAir UV light air purification business as a separate, publicly traded company.
The idea was previously floated in 2019.
Current plans for the spinoff would include naming the company RxAir NewCo, appointing Bryan Stone as CEO of RxAir NewCo., with Steve Rotman remaining CEO of Vystar Corp., as well as serving as chairman of the board for RxAir New Co. Vystar shareholders are expected to own stock in both companies.
The announcement from Vystar said it was the appropriate time to make the split because of the popularity of RxAir filters as a tool to combat the coronavirus pandemic.
“We anticipate that creating the RxAir NewCo pure-play could unlock additional value for our shareholders, as well as make it more attractive to potential investors and customers as we plan for future product line expansion,” Rotman said in a statement.
The company projects RxAir opening price to be $2 per share.
Vystar, originally a latex company, merged with Rotman’s in 2019. Vystar’s other brands include Vytex rubber and green energy firm Fluid Energy Conversion, Inc.
