Verus International Inc (VRUS)

[Mithras]

The bigger question in my mind is - was there an 'adjustment provision' written into the warrant agreement? I'm away from my screens for a while and don't want the headache of reading SEC filings on my phone. Maybe someone else can find it.

The reason I bring it up is that there has been a lot of talk about share structure being an obstacle and the need for an A/S reduction and maybe even a reverse split on the outstanding shares. There are a couple of scenarios I think about regarding the outstanding warrants (and the shares allocated for executive compensation).

1. The quickest path in my mind to what I assume is most everyone's ideal outcome (a merger or takeover by a ARJ/Garnock entity) may be as easy as a gentle split and then an exercise of the warrants (assuming there was no adjustment provision, i.e. in the case of a reverse split the warrants are affected proportionately). If current O/S is assumed at 2.3B shares and a 5/1 or even 10/1 split was executed, ARJ would own roughly 55-85% of the company if the warrants are not adjusted and executed after the split, respectively. This may have been the idea all along... "We’ve known for a while that we needed in-house Counsel, partly due to the growing size and complexity of our M&A and international dealings, but also with an eye toward the increasing number of product lines that we intend to add"

2. Conversely, the warrants (if not already executed) would act as strong motivation not to split the O/S if the company didn't want to cede control to an outside entity - assuming no adjustment provision.

In either case, I don't see anyone losing money here - whether it's splitting in order to become one of the first large scale nano-infused food and beverage companies to market (imagine the outside, large scale investment) or by growing organically into the revenue monster that all of the current and future roll outs will ultimately create (imagine the outside, large scale investment).

Each share held here is a golden ticket.