Great to see a company that actually delivers on what it says. It may not have been as fast as investors would have liked but in less than ninety days this new multi product order has been financed and is now being delivered.
8/16/18
In that regard, Verus is happy to announce that it has reached an agreement to supply a Dubai-based food seller with up to $1 million (USD)/month in multiple vegetable, fruit and meat categories. Initial products are expected to include mangos, onions, potatoes, eggs, mutton, beef and poultry sourced from suppliers in several countries. Financing is being finalized and will utilize a Letter of Credit (LC) and non-dilutive European and U.S. sources.
“Now that we are fully independent, we finally have the freedom to create our own identity and become more active in pursuing growth opportunities,” explained Verus CEO Anshu Bhatnagar. “This contract represents new business (not in our current backlog) and is just the start of the kind of recurring orders that are available to us with the right financing. In this case, we can rely on the LC to minimize our need for funds, while still generating significant revenue.”
9/24/18
The Company is completing the logistical arrangements of its new multi-product order, which will involve as many as a dozen products sourced from six or more countries. This new mixed-product order is expected to ship at a rate of approximately $1.0 million per month when it commences in the next several weeks.
“We have the funding right now through our trade financing to achieve annual revenue of close to $20M if everything falls into place, but clearly that is just a small measure of what we can do with more capital to deploy. While our newest contract has flexible financing and can expand to meet our customer’s needs, our legacy contracts are performing at a maintenance level pending different forms of additional financing. So, our focus is on strategies that will unlock these sources of revenue as quickly as possible.”
11/9/18
We have also begun to deliver on our new multi-product order, which is rolling out product by product.
BOOM!!
This one contract alone represents a 400% increase in revenue and even more incredible to me, considering banks usually look for a minimum of 50 million in revenue to even consider trade financing, Verus at such an early stage has obtained non dilutive, non debt financing.
So much more to come!!
9/24/18
The Company undertook a complete reorganization of its Dubai operations, forming Verus Middle East General Trading. This change will have major long-term ramifications, because Verus now controls 100% of its intellectual property and brands; has a broader product license and can begin to sell non-food items (previously restricted to food only) into the same retail network; and is now completely independent with autonomous control over its GCC operations.
Verus is currently in discussion with the remaining convertible note holders concerning the potential payoff of the notes.
As part of a proposed recapitalization, the Company is in active discussions with a syndicate of investors who have expressed an interest in replacing the existing debt structure along with funding a portion of current backlog.
Verus can confirm that it is in very late stage discussions with two M&A candidates, one that would represent a line extension into existing markets; and a second that would create significant vertical integration opportunities and new facilities on two continents.
and as a reminder, the CEO has confidently stated the following.
Goals- exceed $100M in sales during the first 12
months following adequate funding
Because we previously built a $100M+
business in the same regions, we have a
high degree of confidence in our financial
models and sales expectations.
What we are seeing now is just the very beginning here!!
