Verus International Inc (VRUS)

[GermanCol]

Ksycheng, let me offer you my answer. Following are the 2 main reasons why I think they didn't use option 1 in your message:

Option 1). They use the $600,000 to buy shares today at $0.0123. They get 48,780,487 shares.

This 2 reasons may help you, together with some of the other answers you have already got.

1. If they go with the option of buying the $600K in shares on the open market I can assure you they will not be able to buy them at 0.0123, because they are going to generate a huge demand for shares with a very small supply from current shareholders (most of longs are definitely not selling at these prices). They will definitely end up paying much more than the 0.0123.

Imagine them setting a bid for 48,780,487 shares at 0.0123, the market for the share would go crazy and most of the sellers would start to raise or take out their asks. They would never get filled at that price. Or if they start to slap the ask, the price would start to rise very fast and they would end up paying much more. Finally, if they start with small bids at that price, they will never get to that amount of shares in the following months and will have to take the risk of news coming any time of any day (for sure they are coming and will be huge) and loosing the opportunity to buy even at 0.1.


2. With the deal they have done, they don't have to buy the shares, it's their decisión if they buy them before November 12. If they don't buy them, they will get paid for the loan, the interest and the upfront fee.

What is very clear to me is that they are expecting much more than 0.1 in the following months and because of the kind of institution they are, they cannot take the same kind of risks that we as small investors take, but with this deal they are minimizing risk and maximizing the potential profits.