Verus International Inc (VRUS)

[Shinook99]

Coach - here is what I’ll say.

Time will tell if AG is out or at least decreased his position. I’m very much 50/50 on this, but the selling has to be coming from somewhere. Monaker doesn’t have this amount, Anshu said the notes were done, so that leaves Berdon (so?) and AG.

My bigger point....

Something happened at Verus between Jan 1. and March pre-COVID.

I don’t have a clue what happened. But...

I believe it has something to do with the new auditing firm leaving (maybe they uncovered something that previously AG didn’t know about or something shadiness), the Nutribrands deal going sour, and the BLF ramp up.

I believe one of those 3 events lead to the M/A guy taking a hike. Not sure if Nutribrands was his fault as they made this acquisition happen 6 months after bringing him on board...maybe it was trash DD on his part.

I believe the late filings caused by the auditors were annoying, but excused by AG ...then it came to light that BLF was ramped up using toxic debt ....I think they went back to AG to ask for help and he was like you have to be kidding...why didn’t you scale this division incrementally without toxic debt? I cleaned this up once before. Possibly showed Anshus lack of management abilities.

Then you factor in Nutribrands and if it played into the CBD situation ...and the new brand...maybe some hurt feelings with AG.

All of that has gotten us here...and possibly AG out.

Bottom line - Anshu lost control of this bad boy at the end of 2019, beginning of 2020....

I think he tried to ramp up too quickly.

I think both of these were articulated when he said “we are going to put the focus back on GCC products and keep it simple” — paraphrasing.

I don’t think VRUS is a lost cause but I think a few things:

1.) we lost SP appreciation potential bc of dilution

2.) we lost AG

3.) if another note defaults then we could be in deep trouble and could need a RS

4.) Next 2 quarters are essential for Anshu & VRUS to deliver on the basics and get the ship righted