Sorry but BS don’t fly here
Facts quickly debunk BS
Here are the facts...
$VRUS new financing is non toxic and will be used to eliminate the remaining toxic debt and fund the company
dilution at .02+ and 5% discount to Market is 20 times plus less toxic than having a toxic convertible debt hit you at this level
Let’s say we move back to .02+ in 10-15 days and company starts using the new funds to pay off a convertible debt
a toxic convertible debt would use a 20 day lookback low of .0018 with a 50% discount which is .0009 conversions
New financing would only have a 5% discount to Market which is .019
.019/.0009 is 21 times less shares needed to convert
Market can easily absorb that
This is a no brainer hold with new financing
All clearly explained in last PR
VERUS INTERNATIONAL ANNOUNCES NEW EQUITY INVESTMENT
AND NOTES PAYABLE UPDATE
Gaithersburg, MD – July 2, 2020 – Verus International, Inc. (“Verus” or the “Company”) (OTCQB: VRUS) is providing this update to inform analysts and investors of the status of a new equity funding initiative designed to extinguish the Company’s existing debt. This structure is part of a strategy to lower the Company’s cost of capital while minimizing future dilutive events.
Specifically, Verus has signed an agreement with a financial entity to provide up to $5 million of funding through the periodic sale of equity at a modest 5% discount to market. This agreement provides Verus the ability to access lower cost of capital when needed without creating the potential for significant future dilution. The use of proceeds will be used to retire existing debt and to fund working capital requirements. In addition to this agreement, the Company also expects to establish domestic commercial credit as its U.S. shipments accelerate during Q3 and through Q4 2020. Recurring domestic revenue was a major, missing element required to secure a domestic credit line, so current order flow is expected to be sufficient to finally qualify for this type of low cost credit.
“This new equity funding partnership is an incredible structure for the Company as the 5% discount to market is an extremely low cost of capital,” explained Verus CEO Anshu Bhatnagar. “This structure also allows us to control the amount and timing of any additional dilution as compared to the uncontrolled dilution provided by convertible debt structures.”
Verus is also renegotiating the terms of its note that was scheduled to mature July 1, 2020 and expects to finalize an amended agreement concerning this note in the near future. The Company is also in active discussions with other note holders to extend or modify the payoff structures of the related convertible notes. The near-term note holders have been cooperative in providing flexibility in order to satisfy the principal payments on their respective notes. Verus will update investors as changes to these notes are finalized.
“We have been in friendly discussions with our note holders to create terms that will be more conducive to paying off the balances of these notes, rather than converting the notes to shares of our common stock,” said CEO Bhatnagar. “I am pleased that our note holders are working with us to create solutions that balance their desire to be repaid with our need to use capital to grow. We believe that we have the potential to post our best quarter in history in Q3 2020, so we appreciate the flexibility of our note holders as we return to the level of revenue growth we were able to achieve in prior quarters.”
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