***$VRUS SUPER CHRONOLOGICAL DD PACKAGE***
Verus International, Inc. is an international supplier of consumer products, which it markets under Verus-owned brands to multiple sales outlets. Verus' initial focus is on frozen foods, particularly meat, poultry, seafood, vegetables, and French fries. Verus has a significant regional presence in the Middle East and North Africa (MENA) and sub-Saharan Africa (excluding Office of Foreign Assets Control (OFAC)-restricted nations), with deep roots in the Gulf Cooperation Council (GCC) countries. https://www.verusfoods.com https://twitter.com/Verus_Foods VERUS INTERNATIONAL SIGNS $660,000 NOTE; FOR FUNDED BACKLOG/ACQUISITIONS
On September 17, 2019, Verus International, Inc. (the “Company”) entered into securities purchase agreements (the “Securities Purchase Agreements”) with accredited investors pursuant to which the Company issued and sold convertible promissory notes in the aggregate principal amount of $660,000
(including an aggregate of $110,000 in original issuance discounts) (the “Notes”). The closing of the transactions contemplated by the Securities Purchase Agreements occurred on September 17, 2019.
The Notes mature on September 17, 2020, bear interest at a rate of 4% per annum
(increasing to 24% per annum upon the occurrence of an Event of Default (as defined in the Notes)) and are convertible into shares of the Company’s common stock, par value $0.000001 per share, at a conversion price of $0.10 per share
, subject to adjustment. The Notes may be prepaid by the Company at any time prior to the 180th day after the issuance date of the Notes with certain prepayment penalties as set forth therein.
The foregoing description of the Securities Purchase Agreements and the Notes does not purport to be complete and is qualified in its entirety by reference to the full text of the form of those documents, which are attached as Exhibits 10.1 and 10.2, respectively, to this Current Report on Form 8-K, and are hereby incorporated herein by reference. https://www.otcmarkets.com/filing/html?id=13651911&guid=m9EfUaZlBd-8rZh VERUS INTERNATIONAL, INC. REPORTS 154% INCREASE IN QUARTERLY REVENUE; FORECASTS CONTINUED TRIPLE-DIGIT GROWTH
Gaithersburg, MD, Sept. 10, 2019 (GLOBE NEWSWIRE) -- Verus International, Inc. (“Verus” or the “Company”) today announced financial results for its fiscal 2019, third quarter ended July 31, 2019. In conjunction with this release, the Company is also providing additional details on its strategy for the remainder of fiscal 2019.
For Q3 2019, management is noting the following items of importance: Revenue set an all-time record of $3.48 million in Q3/19, an increase of 154% over the $1.37 million
reported in Q3/18
The Company’s gross margin was approximately 14%. Excluding the MLB business, gross margin was 16.4%, consistent with the expected range for the more traditional Gulf Cooperation Council (GCC) product categories
Operating expenses as a percentage of revenue (backing out non-cash, stock-based compensation) increased to 24.8% of revenue compared to 13.8% in the prior quarter (Q2/19), due to start-up costs associated with the Major League Baseball business
Net loss was $1.36 million, primarily due to non-cash stock-based compensation of approximately $900,000, start-up costs, and legal fees associated with financing and acquisition activities Net income for the nine months ended July 31, 2019 was approximately $469,000, a significant improvement over a net loss of $1.5 million
reported for the nine months ended July 31, 2018.
“The Q3/19 results highlighted the growth potential of our business in the GCC, which accounted for the majority of the revenue,” explained Verus CEO Anshu Bhatnagar. “A large portion of the expense to launch our new MLB business fell into this quarter without much of the revenue, so the bottom-line results were affected by timing.
Promotional materials and initiatives, coupled with recurring operating expenses, all contributed to a spike in our operating costs, which will continue to be incurred as we grow, but will be outpaced by future revenue increases. To put this in perspective, our MLB business only accounted for 1.6% of revenue in this triple-digit growth quarter.”
On a forward basis, the Company is providing the following update and guidance:
Verus has its largest funded backlog in Company history, currently in excess of $34 million
for delivery in the 12 months following commencement of initial shipping schedules Estimated unfunded backlog continues to grow, leaving room for significant future organic growth
The Company has received interest from major retailers
who are exploring carrying the MLB-branded candy and ice cream lines beginning with the 2020 season
Verus is working to secure a second revolving line of credit, targeting its domestic business
In addition to the recently announced french fry acquisition, Verus is actively pursuing other product lines in its frozen food categories
Pending additional funding, the Company is modelling continued triple digit growth over the next six quarters
“It is natural to expect a few hiccups during any product line start-up, but the MLB business progressed rather smoothly through its first production runs,” said CEO Bhatnagar. “So, we are confident that we can ramp up that business in the future. We are in the enviable position of having more backlog than our current capital resources can fulfill
, so getting working capital at favorable rates is a top priority. Our acquisition strategy has evolved a bit, due to the robust environment that is bringing us a steady stream of candidates. In our recent french fry deal, we acquired a product line rather than an operating company, so this is a new avenue for growth that we intend to explore in some additional categories. Overall, we ended the quarter with the largest lineup of growth opportunities in company history
.” https://www.globenewswire.com/news-release/2019/09/10/1913819/0/en/VERUS-INTERNATIONAL-INC-REPORTS-154-INCREASE-IN-QUARTERLY-REVENUE-FORECASTS-CONTINUED-TRIPLE-DIGIT-GROWTH.html VERUS INTERNATIONAL ACQUIRES UAE-BASED FRENCH FRY OPERATION
Gaithersburg, MD, Sept. 03, 2019 (GLOBE NEWSWIRE) -- Verus International, Inc. (“Verus” or the “Company”) (OTCQB:VRUS) is pleased to announce that it has entered into an Asset Purchase Agreement to acquire the french fry operations (the “Acquired Assets”) of an established supplier operating in the Middle East. The consideration to be paid for the Acquired Assets will be equivalent to 2,000,000 United Arab Emirates Dirham ($544,477 USD) in cash, plus assumption of certain liabilities. The consummation of the acquisition is subject to customary closing conditions and is expected to close on or about September 6, 2019.
The Company expects the acquisition will begin contributing to revenue within 30 days
through existing sales relationships and believes this acquisition will give it an established presence in an important frozen food category in its existing hotel, restaurant and similar markets. The french fries will be sold as branded products
“This is not one of our previously-mentioned acquisition candidates
, but is a strategic opportunity to take over an established product category being sold by a multi-line food company in transition,” explained Verus CEO Anshu Bhatnagar. “We knew this supplier well and their french fry products are sold to our target customer base, so this was the kind of strategic bolt-on that we think can accelerate our expansion plans in frozen food. This also aligns with our goal to concentrate on higher-margin, branded products in our traditional markets
. French fries were high on our list of preferred growth initiatives, so the timing of this transaction is ideal. We hope to add more of these product-line acquisitions in the future, giving us additional sources of organic growth, along with a more varied product mix that can generate new business with existing customers.”
U.S. Operational Update
Our second production run of Major League Baseball (MLB) ice cream will target the same teams featured in our initial run, with additional supply expected to reach stores during September. We have already begun planning for the 2020 MLB season and are assembling a significantly expanded launch program for early in the coming year to capture maximum sales
potential from Spring Training through the World Series.
Our candy roll out is on schedule and we hope the roll-out will double our footprint by the end of the 2019 baseball season. We believe that candy locations will expand at a much quicker rate than ice cream, due to the ease of stocking and lower cost per item. Retailer feedback on both the candy and ice cream product lines has been highly positive. https://www.globenewswire.com/news-release/2019/09/03/1909860/0/en/VERUS-INTERNATIONAL-ACQUIRES-UAE-BASED-FRENCH-FRY-OPERATION.html VERUS INTERNATIONAL SIGNS $13.5 MILLION CREDIT INSURANCE POLICY; SELLS OUT FIRST RUN OF MLB ICE CREAM
Gaithersburg, MD, Aug. 26, 2019 (GLOBE NEWSWIRE) -- Verus International, Inc. (“Verus” or the “Company”) (OTCQB:VRUS) is pleased to announce that it has procured $13.5 million in credit insurance from Euler Hermes, the global leader in trade credit insurance, surety, and related risk services
. This new agreement will cover both international and domestic business.
Credit insurance coverage protects businesses from non-payment of commercial debt and removes a key element of trade risk by guaranteeing that all qualified invoices are paid
. This policy will provide multiple benefits by protecting Verus and its vendors from the possibility of non-payment by end customers;
while also giving Verus the ability to extend credit to current accounts and pursue new, larger customers.
This type of insurance is a particularly important competitive advantage for exporters
who cross international borders as part of their supply agreements.
“Euler Hermes has been in business for more than 100 years and operates in 56 countries, so credit insurance bearing their name carries enormous weight with suppliers throughout the world,” explained CEO Anshu Bhatnagar. “Qualifying for this insurance is a vote of confidence in the quality of our sales relationships
, but there is a major secondary benefit that we will see down the road. Trade insurance guarantees that we will be paid, so eliminating default risk will greatly enhance our standing with commercial lenders, enabling us to expand our sources of commercial credit.
Operational Update – Ice Cream Distributor Reorder
We are also pleased to report that our ice cream distributor in the Northeast has sold through their product and has already placed their first reorder.
While this reorder will be filled from existing inventory, we are scheduling a second production run with our manufacturer to meet product demand. As previously reported, our Big League Foods (BLF) subsidiary is rolling out pint products first in the initial markets. Receiving a reorder this quickly is encouraging at this very early stage in the product launch
With distribution of both ice cream and candy accelerating, we are pleased to announce that BLF has hired a logistics manager in anticipation of the next wave of geographic expansion for our Major League Baseball (MLB) products. Additionally, we will be participating in our first U.S. food show this Fall
and have already begun planning for future team roll-outs for the 2020 season. We will provide a full update on our plans for this fast-growing product line in our upcoming Q3/19 earnings call. https://www.globenewswire.com/news-release/2019/08/26/1906792/0/en/VERUS-INTERNATIONAL-SIGNS-13-5-MILLION-CREDIT-INSURANCE-POLICY-SELLS-OUT-FIRST-RUN-OF-MLB-ICE-CREAM.html VERUS INTERNATIONAL ANNOUNCES $500,000 LINE OF CREDIT WITH THE COLUMBIA BANK, N.A.
Gaithersburg, MD, Aug. 01, 2019 (GLOBE NEWSWIRE) -- Verus International, Inc. (“Verus” or the “Company”) (OTCQB:VRUS) is pleased to announce that it has signed a revolving line of credit (“LOC”) with The Columbia Bank, N.A. (a Fulton Financial Corporation affiliate). The revolving credit line is immediately available for eligible foreign trade financing.
The new revolving credit line carries a favorable variable rate of 30-day LIBOR plus 3.00%. The LOC will be monitored by the Fulton International Group and is considered an initial credit line, with the potential for increases to the LOC loan total in the future.
“This is a great resource for our international financing needs, because it is the kind of commercial credit that can expand over time as our relationship grows with The Columbia Bank,” explained CEO Anshu Bhatnagar. “At our current size, getting a line of credit for international trade from a U.S. bank is gratifying, because international credit is not easy to attain. We are particularly excited about the terms. For example, the 30-day LIBOR rate is currently 2.28%,
so under our new loan facility we can borrow right now at just 5.28%, which is a tremendous improvement over any of our prior funding.”
Verus can immediately begin to deploy this source of funds for new business. Based on current average inventory turns, the Company believes that the LOC can generate from $7M to $10M in annual revenue
(depending upon the product mix). In addition to this agreement, Verus is also exploring other vendor and trade relationships that can increase its growth trajectory via favorable terms that help minimize the financing for each shipment.
“This credit facility is part of our long-term strategy to qualify for significant sums of commercial and trade credit,” explained CEO Bhatnagar. “We have considerable unfunded business waiting for financing, so this funding will have one purpose – to grow our revenue
. Because we are using this for working capital, the effect on sales will be immediate
, with the added bonus that the favorable terms will also help our margins. We are very excited to receive this vote of confidence from a major U.S. financial institution. It important to remember that this is a just an initial credit line, so we expect the size of the credit line to increase over time.”
Three of the first four ice cream flavors have shipped and the fourth just completed production. To clarify the process for those who are unfamiliar with a distributor model, the initial shipments go directly to the distributor, not to the retail stores. So, the major store roll out for ice cream will occur in August as the distributors add the Verus products to their routes and stocking schedules. By the end of August, we expect the ice cream will be well represented in the initial target team markets. The candy is several weeks ahead in terms of placement and recently passed the 500-store mark. Verus will provide periodic updates on the store count of the Major League Baseball (MLB) products as distribution accelerates during the next few months. https://www.globenewswire.com/news-release/2019/08/01/1895373/0/en/VERUS-INTERNATIONAL-ANNOUNCES-500-000-LINE-OF-CREDIT-WITH-THE-COLUMBIA-BANK-N-A.html VERUS INTERNATIONAL SIGNS $605,000 NOTE; INCREASES FUNDED BACKLOG
Gaithersburg, MD, July 08, 2019 (GLOBE NEWSWIRE) -- Verus International, Inc. (“Verus” or the “Company”) (OTC:VRUS) is pleased to announce that it has strengthened its capital structure via a $605,000 fixed-rate convertible note from Eagle Equities, LLC. The note carries a 4% per annum interest rate on the principal. The note is due on July 1, 2020
and the holder can convert any amount of the principal into shares of the Company's common stock, at a price equal to $0.10 per share
. Full details of the note are available in the 8-K that was filed in conjunction with this announcement.
Importantly, proceeds from the funding can be used for general corporate purposes and are not restricted to accounts receivable or other narrow applications. As the initial production of the Major League Baseball (MLB) ice cream commences this week, this new funding will enable Verus to accelerate the roll-out of this product category into additional team markets.
“The terms of this note mirror our prior funding announced two months ago, but are with a new lending source,” said Verus CEO Anshu Bhatnagar. “Gaining these terms from an additional financial institution is another vote of confidence in our strategy. These types of fixed-rate loans are outstanding, because they give us an immediate source of funds that can go directly to working capital. At this stage in our growth cycle, we have significant unfilled backlog, so the impact on revenue is nearly immediate with each new source of funds.”
Verus does not publish its unfunded backlog, which has grown considerably during 2019. This new financing will increase the funded backlog to more than $38 million in annual sales
. The Company defines backlog as confirmed orders in hand along with potential expansion under contract terms with current customers. Verus is projecting rapid growth during the second half of 2019 in three major markets: the U.S., Europe and the Gulf Cooperation Council (GCC) countries.
“During the first half of the year, our confirmed backlog grew even faster than our funding
, but we are taking a stair-step approach to managing this rapid growth,” explained Bhatnagar. “These smaller funding sources are part of our strategy to grow our operations to the point where we can qualify for larger sums of commercial credit. In that regard, we are currently in talks with multiple, commercial sources of capital to support our growth initiatives through the balance of this year. We have excellent visibility into 2020 and beyond, so investors should expect a heightened level of activity as we implement the next phase of our ambitious growth strategy
.” https://www.globenewswire.com/news-release/2019/07/08/1879787/0/en/VERUS-INTERNATIONAL-SIGNS-605-000-NOTE-INCREASES-FUNDED-BACKLOG.html VERUS INTERNATIONAL, INC. REPORTS 153% INCREASE IN QUARTERLY REVENUE; FORECASTS RECORD GROWTH FOR FISCAL 2019
Gaithersburg, MD, June 17, 2019 (GLOBE NEWSWIRE) -- Verus International, Inc. (“Verus” or the “Company”) today announced financial results for its fiscal 2019 second quarter ended April 30, 2019. In conjunction with this release, the Company is also providing additional details on its strategy for the remainder of fiscal 2019.
For Q2 2019, management is noting the following items of importance:
Revenue set an all-time record of $2.9 million in Q2/19, an increase of 153% over the $1.2M reported in Q2/18.
The company’s gross margin was approximately 15.4%, within the higher historical range for the current product mix; up 348 basis points compared to Q2/18.
Operating expenses as a percentage of revenue improved significantly to 23.7% of revenue in Q2/19 compared to 38.3% in Q2/18. Excluding non-cash, stock-based compensation expenses, Q2/19 operating expenses as a percentage of revenue were 13.8%. Net income reflected a profit of $2.2 million,
primarily driven by the reversal of certain charges booked in the prior quarter related to the settlement of certain convertible notes payable and a gain realized on the extinguishment of certain other convertible notes payable during the quarter, both of which are beneficial to the Company’s current capitalization strategy.
The Q2/19 operating loss reflected non-cash, stock-based compensation expenses of $290,573. On a pro-forma basis, the Company generated an operating profit of approximately $47,000, compared to an operating loss of $307,289 in Q2/18.
“The Q2/19 results provide more evidence that our growth cycle had already begun, even before our recent growth initiatives,” explained Verus CEO Anshu Bhatnagar. “We acquired Big League Foods in the last week of Q2/19 and our latest capital infusions were signed after the quarter end. Q2/19 should be viewed as a strong launch pad for even better growth in the second half of 2019. If you back out the non-cash stock-based compensation charges, we would have posted an operating profit in the quarter. So, we are right where we want to be as we begin our true growth phase.”
On a forward basis, the Company would like to provide the following update and guidance:
Verus has its largest funded backlog in Company history, currently in excess of $30 million for delivery in the 12 months following commencement of initial shipping schedules.
Estimated unfunded backlog continues to exceed the funded backlog, leaving room for significant future organic growth.
The Company will begin shipping its first products from its Big League Foods subsidiary in the second week of July 2019. Verus is working with a commercial bank to establish a working capital line of credit.
Management is actively engaged in finalizing additional M&A transactions that are both strategic and beneficial to the company and shareholders.
Verus continues to aim for an uplisting to a major exchange, when that process best benefits the Company.
“This was a solid quarter, but I want to give everyone a sense of what is coming,” said CEO Bhatnagar. “In terms of guidance for the remainder of fiscal 2019, we expect our growth rate to accelerate in the next two quarters as our new funding is put to work, and our MLB-branded business and new international lines begin to ramp. Our ultimate growth rate will depend upon the timing of additional working capital, but we have great revenue visibility well into Fiscal 2020. We expect to maintain triple digit growth through the balance of Fiscal 2019 and beyond. Today’s results are a precursor to that growth.”
Big League Foods Ice Cream Update
Verus is pleased to announce four ice cream flavors for its initial shipments of pint containers to retailers. The first flavors will be: Bases Loaded - premium vanilla ice cream with thick swirls of caramel and quality chocolate pieces; Double Play - premium vanilla ice cream with chocolate chip cookie dough and brownie pieces; Grand Slam Sundae - premium chocolate ice cream with mini marshmallows, caramel swirl, fudge brownie pieces and almonds; and Vanilla “Beaned” - premium vanilla ice cream with specks of vanilla bean. These flavors will initially be branded under the Chicago Cubs, Boston Red Sox, New York Yankees and Philadelphia Phillies logos in their respective markets. https://www.globenewswire.com/news-release/2019/06/17/1869579/0/en/VERUS-INTERNATIONAL-INC-REPORTS-153-INCREASE-IN-QUARTERLY-REVENUE-FORECASTS-RECORD-GROWTH-FOR-FISCAL-2019.html VERUS INTERNATIONAL NAMES CHIEF FINANCIAL OFFICER
Gaithersburg, MD, June 07, 2019 (GLOBE NEWSWIRE) -- Verus International, Inc. (“Verus” or the “Company”) (OTC:VRUS) is pleased to announce that Christopher Cutchens has been appointed as the Company’s Chief Financial Officer, effective June 1, 2019. As part of this appointment, Mr. Cutchens has relocated to Verus’ Maryland office.
“We have so many things in work, that appointing a full-time CFO on premises has become a critical need. I am looking forward to having another key member of our staff under the same roof,” said Anshu Bhatnagar, Verus’ CEO. Mr. Cutchens has more than two decades of experience in public and private corporate finance
, so his depth of knowledge will be invaluable as Verus extends its reach into new geographies and product categories. Most recently, Chris served as the Managing Partner of Cutchens Group, LLC, a consulting firm specializing in providing operational and financial services to both public and private companies and Chief Operating Officer and Chief Financial Officer of DirectView Holdings, Inc., a company that provides security and surveillance and video conference services. In addition, Chris has served in various leadership positions at private companies, including: Executive Vice President, Chief Operating Officer and Financial Officer of MidAmerica Administrative & Retirement Solutions, LLC, a private company that provides employee benefit programs to plan sponsors and employees; and Executive Vice President and Chief Financial Officer of Aspire Financial Services, LLC, a private company that is a service provider of retirement solutions.
Chris has also held various leadership positions at public companies, including: Corporate Controller of Watsco, Inc., one of the largest publicly-traded distributor of air conditioning and refrigeration equipment and parts in the U.S.; and Director of Corporate Accounting and Financial Reporting at MarineMax, Inc., one of the largest publicly traded recreational boat retailer in the U.S.
“As I grew to know the Verus story and began to understand the significant growth potential, I decided that this would be a perfect time to join the Company
,” explained Mr. Cutchens. “Anshu’s entrepreneurial spirt and the potential size of this opportunity were both very appealing. I am excited to be part of a true growth story at such an early stage.
” https://www.globenewswire.com/news-release/2019/06/07/1865826/0/en/VERUS-INTERNATIONAL-NAMES-CHIEF-FINANCIAL-OFFICER.html VERUS INTERNATIONAL ANNOUNCES $500,000 STRATEGIC INVESTMENT FROM ARJ CONSULTING, LLC
Gaithersburg, MD, May 31, 2019 (GLOBE NEWSWIRE) -- Verus International, Inc. (“Verus” or the “Company”) (OTC:VRUS) is pleased to announce that it has received a strategic investment from ARJ Consulting, LLC and lead investor Andrew Garnock
. The transaction involved the sale of 41,666,666 shares of common stock at a purchase price of $0.012 per share for aggregate gross proceeds of $500,000.
The price was determined at a slight premium to the market at the time that the agreement was signed. Details of the investment will be included in the 8-K filed in conjunction with this transaction.
“This additional vote of confidence in our strategy could not come at a better time, as we begin to ramp up our new business,” said Verus CEO Anshu Bhatnagar. “To find a lead investor who shares our long-term vision of the future is gratifying. We look on our business as a multi-year growth story, so this latest investment shows Andrew Garnock’s commitment to that vision.”
The funds will help ramp up the new Big League Foods Division shipment schedule to take advantage of the summer and baseball seasons.
“We intend to roll out the MLB-branded products by metro team markets, so funding is a key to accelerate that process,” explained Bhatnagar. “Because these products already have such well recognized team brands on the labels, we do not have the kind of promotional spending that typically accompanies a new product launch. So, more of our working capital can go toward production and sales. Additional capital such as this can have a tremendous multiplier effect on our high margin business.”
Interested investors are encouraged to monitor ongoing product announcements via the official Twitter feed @Verus_Foods. https://www.globenewswire.com/news-release/2019/05/31/1862812/0/en/VERUS-INTERNATIONAL-ANNOUNCES-500-000-STRATEGIC-INVESTMENT-FROM-ARJ-CONSULTING-LLC.html
VERUS INTERNATIONAL ANNOUNCES ACQUISITION OF BIG LEAGUE FOODS, INC. – GAINS LICENSE WITH MAJOR LEAGUE BASEBALL
Gaithersburg, MD, April 26, 2019 (GLOBE NEWSWIRE) -- Verus International, Inc. (“Verus” or the “Company”) (OTCPink:VRUS) today announced its acquisition of Big League Foods, Inc. (“Big League Foods”), which has a license with Major League Baseball Properties, Inc. (“MLB”) to sell MLB-branded frozen dessert products and confections. The license covers all 30 MLB teams.
Upon the closing of the acquisition of all of the outstanding capital stock of Big League Foods, Big League Foods became a wholly-owned subsidiary of Verus. The initial ice cream product line will include grocery store-type packaging in 1.5 quart and pint container sizes, in addition to novelty “grab-and-go” size ice cream in cone, bar, and sandwich versions. The confections product line will include gummi and chocolate candies. Products will feature “home team” packaging to match the fan base in each region. More than 2,500 retail locations, including large national and regional retailers, have agreed to stock these MLB-branded products in their freezer cases.
“This is a great acquisition for Verus, because it gives us a 100% U.S. business channel and has the potential to scale up significantly over time,
” explained Verus CEO, Anshu Bhatnagar. “These types of licenses come with built-in loyalty, because the product will bear the MLB logo and the signature name and emblem of the local team. In 2019, we intend to start distributing products to a handful of teams, with the goal to roll out products featuring all 30 teams as we build out our new business segment.”
Big League Foods founder, James Wheeler, will continue to lead the Company’s new wholly-subsidiary as its President and will join Verus at its corporate headquarters in Maryland.
“After thirty years in the food business, I know how important it is to have a great team and the right resources to successfully grow and gain shelf space,” said Mr. Wheeler. “Joining forces with Verus will enable us to grow much faster than we could have done as a private enterprise
. Our ultimate vision is even bigger than this first MLB license, but also includes other confectionary products and other sports leagues and branding opportunities.
Sports fans are loyal consumers, and we have the opportunity to gain a foothold in the $25 billion frozen dessert market
via that loyalty.” https://www.globenewswire.com/news-release/2019/04/26/1810571/0/en/VERUS-INTERNATIONAL-ANNOUNCES-ACQUISITION-OF-BIG-LEAGUE-FOODS-INC-GAINS-LICENSE-WITH-MAJOR-LEAGUE-BASEBALL.html VERUS INTERNATIONAL, INC. REPORTS 145% INCREASE IN QUARTERLY REVENUE, ANNOUNCES LARGEST FUNDED BACKLOG IN COMPANY HISTORY
Gaithersburg, MD, March 25, 2019 (GLOBE NEWSWIRE) -- Verus International, Inc. (“Verus” or the “Company”) today announced financial results for its fiscal 2019 first quarter ended January 31, 2019. In conjunction with this release, the Company is also providing a more detailed description of its strategy for fiscal 2019.
For Q1 2019, management is noting the following items of importance:
• Revenue set an all-time record of $2.4 million in Q1/19, an increase of 145% over the $996,125 logged in Q1/18.
• The company’s gross margin was approximately 15%, in the higher expected range for the current product mix.
• Operating expenses increased 43.3% in the quarter due to extensive legal and other costs related to the recapitalization, but will normalize in future quarters.
• Despite extensive one-time costs, the Net Loss showed a 45.8% improvement over Q1/18
• Payroll expense fell 33% to $98,223 in Q1/19 compared to Q1/18, an indication of the leverage in the current operational model when coupled with record sales.
“The Q1/19 results showed more of the growth that is coming, but also had the heavy legal and other expenses associated with the recapitalization effort that was announced just eleven days after the quarter’s end,” explained Verus CEO Anshu Bhatnagar. “These are one-time charges associated with what was a very challenging multiparty negotiation. Legal and G&A accounted for nearly 80% of our operating expenses during the quarter, so these line items are going to be dramatically reduced in the next quarter. Without these one-time expenses, Q1/19 would have been a profitable quarter.
On a forward basis, the Company would like to provide the following update:
• Verus has its largest funded backlog in Company history, currently at $24 million for delivery over the next 12 months
• The Company’s unfunded backlog continues to be very large, but management has elected to discontinue publishing this estimate pending additional trade or working capital financing
• All of the announced orders to date, along with orders under negotiation, are reported at base rates, with the potential for considerable expansion
• The Company is in very late stage talks with commercial sources of credit to unlock a portion of the unfunded backlog
• In terms of potential mergers and acquisitions, Verus is conducting due diligence on eight candidates and is moving forward on several of these companies. Two of these negotiations are at the final negotiation stage
. It is not possible to say how many of these candidates will become operating subsidiaries until final contracts are completed.
• In response to numerous investor questions, the Company does not have a reverse split planned at this time, but intends to grow organically to reach the necessary market cap level required for an uplisting to a major exchange
• Verus continues to aim for an uplisting during calendar year 2019
“We have decided not to conduct a traditional earnings call this quarter, but will resume that practice next quarter when our financials return to a more normal spacing. Quite frankly, I have so many projects at critical phases, that I want to get these across the finish line as quickly as possible,” said CEO Bhatnagar. “I am currently working on M&A, new orders, and commercial credit arrangements for new business both overseas and, for the first time, here in the U.S.”
“In terms of the just reported quarter, investors should note that costs surrounding the recap were extraordinarily high and those expenses will normalize in the next quarter, making for some dramatic decreases on some of the expense lines. Because of that, we expect to begin generating an operating profit in future quarters, with bottom line profitability coming as well. In terms of calendar year 2019, our growth rate will continue to accelerate in each successive quarter as we layer on additional business. Based on our discussions with new sources of growth, we also anticipate significant product line and geographic expansion during 2019, with the potential to enter new countries and add higher margin consumer product categories. This is shaping up to be a watershed year for Verus.”
Interested investors are reminded to watch for product updates on the official Twitter feed @Verus_Foods. https://www.globenewswire.com/news-release/2019/03/25/1767243/0/en/VERUS-INTERNATIONAL-INC-REPORTS-145-INCREASE-IN-QUARTERLY-REVENUE-ANNOUNCES-LARGEST-FUNDED-BACKLOG-IN-COMPANY-HISTORY.html VERUS INTERNATIONAL ANNOUNCES $4 MILLION RICE SUPPLY AGREEMENT
March 05, 2019 09:22 ET | Source: Verus International, Inc.
Gaithersburg, MD, March 05, 2019 (GLOBE NEWSWIRE) -- Verus International, Inc. (“Verus” or the “Company”) is pleased to announce that it has received an order from a distributor to deliver approximately $4 million worth of rice annually for the Dubai market.
Verus will source three to four varieties of rice from multiple producers in India to meet this initial demand. Under the terms of the agreement, Verus will sell rice under both the supplier’s brand name and a Verus brand.
Financing should be in place within a week and the first containers are expected to begin shipping soon at a rate of approximately ten containers per month. These products will consist of basmati and other rice varieties in primarily 10kg package sizes for the retail and commercial markets.
“This is exactly the kind of contract that we believe we can replicate many times over,
” explained Verus CEO Anshu Bhatnagar. “As we announce these orders for branded staples found in just about every home and restaurant in our current markets, investors should remember that these are starter quantities. We expect these orders to grow as they season
, with expansion coming from both market penetration and extension into new geographies.”
The rice agreement fits into Verus’s strategic plan to gradually layer on product lines across many retail and wholesale food categories, with an early emphasis on scalable staples.
“In our core markets, branded products and fresh foods get the best margins,” explained CEO Bhatnagar. “So, those are areas where we intend to initially focus. When you can establish a footprint with a branded version of a leading staple, such as rice or our previously announced honey, you get the added bonus that the opportunity is essentially open-ended. Rice is a multi-billion dollar import in the places where we already operate, so it was essential that we establish a presence in this key category
.” https://www.globenewswire.com/news-release/2019/03/05/1748164/0/en/VERUS-INTERNATIONAL-ANNOUNCES-4-MILLION-RICE-SUPPLY-AGREEMENT.html VERUS INTERNATIONAL SIGNS $10 MILLION HONEY SUPPLY AGREEMENT
February 28, 2019 13:15 ET | Source: Verus International, Inc.
Gaithersburg, MD, Feb. 28, 2019 (GLOBE NEWSWIRE) -- Verus International, Inc. (“Verus” or the “Company”) is pleased to announce that it has signed an agreement to supply honey products in Europe and parts of the Middle East. The initial phase of the agreement is expected to generate approximately $10 million in annual sales.
The contract will focus particularly on the United Kingdom and Germany, but will include a dozen countries in Europe and the Middle East. Depending upon the market, Verus will offer from 20 to 30 different stock keeping units (SKUs) covering a broad range of honey categories and product sizes.
“This is an important contract for Verus, because it marks our entry into Europe as an importer of a high-quality staple with consistent demand
,” said Verus CEO Anshu Bhatnagar. “Our long-term goal is to be an international food seller with a wide range of product lines, suppliers and customers on multiple continents. Honey is a universal product that can spearhead that strategy.”
Although Verus has used outbound suppliers from Europe in the past, this marks the Company’s first import sales agreement in Europe
. The supplier is a highly-respected global honey producer based in India.
“This honey contract is exciting because it opens up new geographies and product lines simultaneously,” explained CEO Bhatnagar. “The consumer products business is all about building relationships and gaining access to shelf space, so establishing a footprint is the first step in adding other SKUs in additional product categories. Along with this initial dozen markets, we also have the option to enter the U.S. market in the future
, so we have the potential to expand our new honey business significantly over time. Honey is one of the few truly global foods, so this will open many new doors for us.” https://www.globenewswire.com/news-release/2019/02/28/1744678/0/en/VERUS-INTERNATIONAL-SIGNS-10-MILLION-HONEY-SUPPLY-AGREEMENT.html Verus International Announces $1.45 Million Financing and Retirement of Notes
February 11, 2019 17:30 ET | Source: Verus International, Inc.
Gaithersburg, MD, Feb. 11, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- Verus International, Inc. (“Verus” or the “Company”) is pleased to announce that it has received $1.45 million in funding, as detailed in a Form 8-K filed today. The notes were placed with two separate institutional-quality shareholders; individuals who had already invested in Verus through prior purchases. Importantly, this funding places the stock in the hands of friendly equity-oriented investors who expressed a desire to increase their stake in the Company.
Concurrent with this funding, Verus is pleased to announce that it has retired all of the variable rate convertible notes (“toxic notes”) held by four separate creditors
. This action is particularly important because it will enable Verus to remove a sizeable reserve from its balance sheet and avoid paying millions of dollars in penalties and other charges. As part of this multi-party agreement, the Company’s other key note-holder, Donald Monaco, has agreed to extend his $530,000 note for an additional nine months, with no significant change in terms. These actions are now completed and signed off by all parties, giving the Company full releases from all prior note holder provisions.
“This marks the culmination of nearly two years of effort to put behind the legacy of RBIZ-related issues. These negotiations were difficult and long, with as many as 15 parties involved in the process.
But the end result was well worth the effort, because we negotiated terms that avoided any default interest or fees, were at a substantial discount to the standard premium, and ended the threat of significant dilution from our existing note holders,” explained Verus CEO Anshu Bhatnagar. “Our goal was to create a structure that minimized dilution, but left us with a good foundation to finally begin our growth stage. We know both investors well and they represent a new stage in our goal to move toward institutional-quality funding sources that carry better terms and involve long-term oriented partners.”
The Company is currently working to complete its 10-K, which was delayed while the debt settlement was in process. The 10-K will be filed after reviewing sections that may have been impacted by the agreements announced today. Verus will provide a comprehensive update on its strategic plan in conjunction with the filing of these year-end financials.
“The impact of this funding cannot be understated,” said Bhatnagar. We needed to clean up these existing notes before we could commence our other growth initiatives. With the delinquent debt now erased, we can finally move ahead with a master plan that has been waiting for a green light for many months. Our goal is to uplist to a major exchange in 2019 and to grow our business both organically and through mergers and acquisitions.
This financing marks the initial step in that process.” https://www.globenewswire.com/news-release/2019/02/11/1720445/0/en/Verus-International-Announces-1-45-Million-Financing-and-Retirement-of-Notes.html FORM 3 https://www.otcmarkets.com/filing/html?id=13250128&guid=0MA3UemBced-1yh
Who is Andrew Garnock?
See his two companies neither of which are currently public. https://www.disruption-labs.com https://resetbioscience.com RealBiz Media Group Corporate Update: Announces Completion of Spin-off and New Contract Covering Multiple Products
Press Release | 08/16/2018
Gaithersburg, MD, Aug. 16, 2018 (GLOBE NEWSWIRE) -- RealBiz Media Group, Inc. (OTCPink: RBIZ) (the “Company”) is pleased to announce that as of August 10, 2018, the distribution of the NestBuilder real estate division was successfully completed. This marks the starting point for Verus Foods as an independent company with a singular focus on the food industry. Most importantly, the Company will now be able to pursue a variety of business opportunities that had been placed on hold under the prior structure.
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.
The shipments will vary in terms of mix, but will generally consist of 1-4 containers of each product per week. Margins and other details will not be disclosed, but fall into the Company’s target range for these types of foods. Shipments are expected to commence in September 2018.
“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.”
In addition to these staples, the Company is also pleased to announce that its roadmap over the next several quarters will involve a number of significant product initiatives, including:
• The introduction of six Verus-owned brands -- in the Italian foods, Middle Eastern and American food categories; and energy, fruit, and coconut lines in the beverage space
• Planned line extensions in beverages
• New retail and snack food product families in areas such as mixed nuts, olive oil and condiments
These initiatives are part of a long-term goal to consistently add products in order to create a robust presence throughout the food supply chain in our target markets
In terms of corporate matters, the completion of the NestBuilder distribution will now enable Verus to file for a name and symbol change, which is expected as early as next week. Due to the significant number of strategic initiatives in various stages of development, the Company has also elected to discuss topics such as capital structure, additional financing, and potential new business lines in follow-on updates.
“I just completed a very productive international business trip where I met with suppliers, customers and potential partners,” said CEO Bhatnagar. “Due to the significant number of strategic initiatives currently in process, we have decided to schedule a more detailed update after the outcomes of these discussions have been determined. We are currently in near-term negotiations involving new contracts, sources of financing and, for the first time, merger and acquisition opportunities – each of which could have a material effect on our capital structure and the strategic direction of our business. We expect to have clarity on some of these initiatives in the next several weeks.” DISNEY DEAL AND CT ORDER
One cannot argue the contracts we have with Disney or the $78 mil beef deal, it's all right there in the filings. Would the SEC allow a CT Order for an SEC filer if it wasn't all legitimate? I think not. In fact, I will begin to walk you through what's covered under the CT Order so investors can understand what was given the Confidential Treatment or CT Order. This is important because the Commission now releases orders relating to applications for confidential treatment of certain information otherwise required to be included in filed documents. The Divisions of Corporation Finance and Investment Management issue these orders pursuant to delegated authority. After showing the contracts are legit, I will prove they are also being fullfilled.
I took a screenshot of the beginning portion of exhibit 10.25 && 10.26 so investors can see what the exhibits are for. I encourage investors who haven't, go read the 10-k in its entirely. It may help you better understand the legitimacy of $VRUS and where it's headed in the near future. https://www.sec.gov/edgar/searchedgar/ctorders.htm
SEC CT order for Exhibits 10.25 && 10.26
CT Order 10.25. Beef Contract https://www.otcmarkets.com/stock/VRUS/news/RealBiz-Awarded-78-Million-Contract-To-Deliver-Beef-to-the-Middle-East?id=147791
CT Order 10.26. Disney Distribution https://www.otcmarkets.com/stock/VRUS/news/RealBiz-Media-Group-Verus-Foods-Announces-Exclusive-Juice-Distribution-Agreement-with-The-Walt-Disney-Co-in-the-United-A?id=170497
Now that we can see the contracts are legit, lets see them being fulfilled, right investors?!?! Well here ya' go, contracts are indeed being fulfilled. Now that Verus has removed all past legacy issues from Realbiz Media, and can look to traditional forms of finance, they are now fulfilling this contract at an ever increasing rate as taken from the last 10q
• Verus has its largest funded backlog in Company history, currently at $24 million for delivery over the next 12 months
• The Company’s unfunded backlog continues to be very large, but management has elected to discontinue publishing this estimate pending additional trade or working capital financing
• All of the announced orders to date, along with orders under negotiation, are reported at base rates, with the potential for considerable expansion
• The Company is in very late stage talks with commercial sources of credit to unlock a portion of the unfunded backlog Verus Mangement Anshu Bhatnagar – Chief Executive Officer and Chairman
Anshu Bhatnagar has served as our Chief Executive Officer and Chairman of the Board since January 2, 2017. In addition, Mr. Bhatnagar is a food distribution veteran and previously was the Chief Executive Officer of American Agro Group, an international trading and distribution company that specialized in exporting agricultural commodities and food products from 2012 to 2016. Mr. Bhatnagar was also a Managing Member of Blue Capital Group, a real estate oriented multi-family office focused on acquiring, developing, and managing commercial real estate as well as investing in operating businesses from 2008 to 2016. He has also owned, operated and sold other successful businesses in technology, construction and waste management. The Board believes Mr. Bhatnagar is qualified to serve as a member of the Board because of his extensive business experience.
Anshu Bhatnagar is a highly accomplished senior executive focused on private equity, real estate and running operating business across multiple industries.
Mr. Bhatnagar is a visionary, successful serial entrepreneur with numerous profitable, global businesses to his credit. Well-versed in all aspects of real estate acquisition and disposition, development, financing, leasing and operation and has broad experience across many sectors of real estate - hospitality, office, retail, multi-family, industrial and single family residential. He has a solid track record of developing and implementing strategic business plans that govern daily operations, position in the market, and ultimate disposition.
Mr. Bhatnagar has an exceptional career production – managed commercial real estate portfolios in excess of $1.0B, executed over 100 debt and equity transactions, sponsored a highly successful private real estate fund and a mezzanine debt fund. Michael O’Gorman – Director
Michael O’Gorman has served as a member of our Board since August 11, 2017. Mr. O’Gorman has over 35 years of successful food brokerage, food manufacturing, project management, finance and legal experience in the international arena. Since 1982, Mr. O’Gorman has also served as Chairman and Chief Executive Officer of Crassus Group of companies, includes entities whose subsidiaries specialize in sourcing and marketing all natural, healthy food and consumer products. In addition, from 1976 to 1979 he served as Chief of Staff in both the House of Representatives and U.S. Senate. He has firsthand experience with agriculture since he has owned and operated a 252-acre farm where he raised both crops and Black Angus cattle. Mr. O’Gorman has spent a number of years working at major international law firms as well serving as a Member of the Corporate Law Department, Director of Litigation Support Group of Peabody International Corporation, Fortune 100 NYSE from 1979 to 1986. Mr. O’Gorman received his JD with a concentration in international law from the University of Connecticut, MBA in international finance from Fairleigh Dickinson University and BS in organic chemistry from St. Peters College. The Board believes Mr. O’Gorman is qualified to serve as a member of the Board because of his experience in agriculture and the food industry. Thomas Butler Fore – Director
Thomas Butler Fore has served as a member of our Board since August 11, 2017. Mr. Fore is a multi-faceted entrepreneur and executive with experience in numerous categories of business, including real estate, media, personal care products and fashion. He has served as Chief Executive Officer of Sora Development, an award winning real estate development firm focused on large mixed-use projects with a specialty in public-private partnerships since 2007. In addition, from 2012 he served as Chief Executive Officer of Tiderock Media, a film production company and in 2014 he founded Digital2go Media Networks where he also served as a member of its board. Mr. Fore is also involved as an advisor and partner in numerous other enterprises in media, real estate and consumer products. Mr. Fore received his BA from Towson University. The Board believes Mr. Fore is qualified to serve as a member of the Board because of his background and experience in the industry. Piyush Munot - CFO of Operations in Middle East, Africa && Asia
Piyush Munot has more than 18 years of total work experience including over a decade in the Corporate Finance & Advisory field. Prior to joining Al Masah Capital, Piyush worked at Al Dahra Holding, a food and agriculture dedicated sovereign wealth fund focusing on Fund Management & Investments. In addition, he also worked at KPMG for 7 years in their Business Valuations and M & A division. Piyush holds a Bachelors of Commerce from Narsee Monjee College in Mumbai, India, is a Certified Public Accountant from USA and an Executive MBA from the Indian Institute of Management.
CEO's words on CFO hiring; "In just the last few months, we have added an independent board, a very experienced CFO from a multibillion dollar public company.
Bringing in Piyush Munot as CFO to oversee our operations in the Middle East, Africa and Asia is a tremendous hire. We don't expect most investors to know some of the companies in the region, but Piyush was recently Group Finance Controller at a Division of Al Dahra Holdings, one of the leading sovereign wealth fund agri businesses in the UAE.
He has worked at major accounting firms such as KPMG and PWC, and is a US certified public accountant. He is also a great addition to our team and will help seamlessly integrate our overseas operations into our corporate accounting structure here in the US." Chris Cutchens - Interim Chief Financial Officer (CFO)
Gaithersburg, MD, Oct. 12, 2018 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- RealBiz Media Group, Inc. (RBIZ), currently operating as Verus Foods (the “Company”), today announced that it has named veteran financial professional Chris Cutchens as Interim Chief Financial Officer (CFO). Mr. Cutchens assisted with the most recent quarterly financial filing and is deeply familiar with the Company’s operations through that experience.
Chris brings more than 20 years of experience in public and private corporate finance. Most recently, Chris served as COO/CFO of MidAmerica Administrative & Retirement Solutions, a private-equity owned, national employee benefit program provider and administrator. Prior to MidAmerica, Chris served as CFO of Aspire Financial Services, a private-equity backed, national retirement plan solutions provider for all tax codes. Prior to Aspire, Chris held various leadership positions: Corporate Controller of Carrier Enterprise, a multi-billion-dollar joint venture between Watsco, Inc. and industry giant Carrier Corporation; Corporate Controller of Watsco, Inc. (NYSE), the largest publicly-traded distributor of air conditioning, heating, and refrigeration equipment and parts in the U.S.; and Director of Corporate Accounting and Financial Reporting of MarineMax, Inc. (NYSE), the largest publicly traded recreational boat retailer in the U.S., when the company achieved a record $1.2 billion in revenue.
Chris was Tampa Bay Business Journal’s 2015 CFO of the Year of privately held, medium-sized companies in Tampa, Florida. He is a Certified Public Accountant in the state of Florida and holds a BS in Accounting and a MA in Accounting Information Systems from the University of South Florida.
“We are very pleased to have Chris join our team to give us a more consistent presence in managing our accounting and reporting functions,” said Verus CEO Anshu Bhatnagar. “Now that we are about to enter our growth phase, it is time to bring the CFO duties back to the U.S. in order to streamline our efforts. Chris worked on our most recent Q3/2018 financial filing, which was particularly complicated as it included the final consolidated quarter reflecting the NestBuilder spin-off, so he is already embedded with Verus and understands our systems and financials. In addition to his deep experience with public company finances, early in his career Chris was a senior auditor with KMPG, where he worked with multi-billion-dollar retailer Publix Supermarkets, giving him direct experience in the retail environment where Verus operates.”
Filling the CFO position is the first item on a list of pending corporate actions designed to enhance the growth prospects of Verus as it begins to operate as a fully independent entity. The Company will layer on additional resources, both at the executive and operational level, as needed, to support this growth. https://www.mkr-group.com/case_studies.html
Investor Relations Contact: MKR Group Inc. Mark Forney firstname.lastname@example.org This package was brought you by Joecanada13 and Thoth
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