Their intention is not to dilute
Actions speak louder than words. They prepaid the first PowerUp note at the end of August. At that time (read the PR), they explicitly stated that they wanted to minimize dilution and replace debt incurred with tranches on more favorable terms. They could obviously renege on that promise, but keep in mind that the CEO and CFO own millions of shares through grants, restricted stock and warrants. Their interests are aligned.
I believe they will address the issue of the converts on the call. If not, I'm sure someone will ask about it.
Now that they can put the legal liability into the real estate business, Verus should be able to raise capital at much more favorable terms. They've already got the Standard Chartered deal and I imagine the CFO is working on other credit agreements to take out the converts.
Still a long way to go here, but they took a big step when they won the legal battle that now allows them to separate the two business units.
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