Verus International Inc (VRUS)

[shotsky]

Starting with the Garnock loan, this is exactly how they have been operating. Unfortunately, the Garnock loan was also convertible, and they did not have enough shares in the AS to cover it. THAT is what I pointed out last year - that is illegal. The Garnock loan enabled them to pay off the OTHER loans that were on the books. A fresh start. But the business model is unchanged - they buy goods and sell them, and they don't have enough cash to pay up front, especially considering they have to pay those loans back before they convert. Then they get another loan. No big deal - it is not the terms of the loan that counts, because they aren't going to let them convert. They just need funds to run their business, and they have to borrow to get as much product as they need.
Having been in the same business, only all importing, all business is conducted in cash or an LC - letter of credit - and the standard unit of shipment is the 'container'. You buy containers of goods, ship them where needed, and get paid. They don't sell to consumers, they sell to distributers. This is the bridge between the manufacturers and the distributers.