Verus International Inc (VRUS)

[Mithras]

The significantly large amount of legal fees that the company acknowledged today as being late stage acquisition related and the intended uses of the credit insurance policy that couldn’t be disclosed are very good indicators that the ‘pattern break’ you mentioned is closer than I would want to guess.

The last statement the company made prior to today’s call regarding their inability to comment on the late stage M/A included the word ‘negotiations’. The CFO’s statement today regarding the associated M/A legal fees and his inability to comment was ‘because they have not yet closed’.

He may have been gagged on the call but he was screaming in the filing:

Legal and Professional fees for the 3 months ending 7/31/19 = $266,592 (Most recent Q)
Legal and Professional fees for the 3 months ending 4/30/19 = $76,538 (Prev. Q - included BLF acquisition!)

If they conservatively anticipate $50-$100 million in revenue from the BLF acquisition after roll-out, what do we think an international credit insurance policy and $200k+ in contracts and closing work is going to get us?