Verus International Inc (VRUS)

[GermanCol]

No, is not toxic.

What is a Toxic Funding
A toxic financing is convertible debt or preferred stock that allows the financier, the holder of the debt or preferred shares, to essentially receive an unlimited number of free trading common shares when they convert their debt or preferred shares to common stock.

http://coralcapital.com/toxic-financing-explained/#:~:text=A%20toxic%20financing%20is%20convertible,preferred%20shares%20to%20common%20stock.

What Is Toxic Debt?
Toxic debt refers to loans and other types of debt that have a low chance of being repaid with interest. Toxic debt is toxic to the person or institution that lent the money and should be receiving the payments with interest. Toxic debt generally exhibits one of the following criteria:


Default rates for the particular type of debt are in the double digits
More debt is accumulated than what can comfortably be paid back by the debtor
The interest rates of the obligation are subject to discretionary changes

Any debt could potentially be considered toxic if it imposes harm onto the financial position of the holder.

https://www.investopedia.com/terms/t/toxic-debt.asp#:~:text=Toxic%20debt%20refers%20to%20loans,receiving%20the%20payments%20with%20interest.

In this case, there is no debt, so there is no interest, as a consequence obviously there is no default interest (that normally is double digit) and finally there is explicit prohibition to the investor or any related party to short, the ONLY way for the investor to have a real benefit is by the effect of higher share price times increase in share price. Otherwise is peanuts. So no dump to be expected from the investor as some are trying to predict without any proof. Is funny that some posters quote the filings and change the meaning believing people here are dumb.

Toxic finance on the other hand has huge discounts (around 50% to 60%) and tipically double digit interest rates, so there is where lenders make the money. That's why they start to dump shares as soon as they can and also because they know that as they dump, the share price starts to collapse and they lose their benefit or part of it if they wait.

Please share with use the link or evidence that the investor is going to dump, short and the company is going to RS. Also that our shares will eventually be worth less than the brokerage fees. When the price drops to roughly .0006. Now that the company has put to rest the RS false rumors and that the filing includes explicit prohibition to short, looks like some are trying bring it here to scare others and get cheap shares.

Finally, buys are timed by VRUS, not by White Lion. Also important to remember that VRUS has the RIGHT to use or not this financing and White Lion has the OBLIGATION if the company wants to use it:

Section 2.1 PURCHASE NOTICES. Upon the terms and conditions set forth herein (including, without limitation, the provisions of Article VII), the Company shall have the right, but not the obligation, to direct the Investor, by its delivery to the Investor of a Purchase Notice from time to time, to purchase Purchase Notice Shares provided that the amount of Purchase Notice Shares shall not exceed 250% of the Average Daily Trading Volume or the Beneficial Ownership Limitation set forth in Section 7.2(g)

Section 7.1 CONDITIONS PRECEDENT TO THE RIGHT OF THE COMPANY TO ISSUE AND SELL PURCHASE NOTICE SHARES.

Section 7.2 CONDITIONS PRECEDENT TO THE OBLIGATION OF INVESTOR TO PURCHASE PURCHASE NOTICE SHARES.

https://www.otcmarkets.com/filing/html?id=14257168&guid=jz8FUnRCUJdMbth


Difficult to believe I know, that doesn't normally occur in the OTC.