Verus International Inc (VRUS)

[Renegades17]

Lawsuit

You're right, the CEO suggested that there was a motion that was scheduled to go before a judge in July. IR wouldn't comment any further other than what was revealed on the last earnings call.

The company has received numerous requests from shareholders to just settle the lawsuit and move on, but the CEO doesn't want to issue stock to Monaker and feels that they have a great case (both to keep the shares cancelled and get slightly over $1mm in cash). I admire his resolve, but obviously I'd like to see this settled so we can move onward.

IR indicated to me that there is a lot of interest in the stock, but as you mentioned, several institutions want to see this move from penny land to at least a few dollars. To really attract institutions, the market cap needs to get above $50mm. If the CEO properly articulates the strategy and opportunity, I think that can happen quickly, but time will tell.

This is a highly positively skewed investment opportunity. I think the low trading volume indicates that the effective float is quite small despite the large share count.