Replies to post #167253 on Verus International Inc (VRUS)

[polvo31]

LOL, really? VRUS is a scam and all are aware. I can't believe you can't find the proof; it's even right there in some of the links you provide....

Hey, everyone - Dilution is GOOD!!


(it's not)

[NoMoDo]

So the question on the table is: Is the new financing instrument a toxic financing agreement?
Lender gets purchase notice. Dumps roughly that value of stock within 6 days and then calculates how many shares the company owes them. Look:

DATE OF DELIVERY OF PURCHASE NOTICE. A Purchase Notice shall be deemed delivered on (i) the Business Day it is received by email by the Investor if such notice is received on or prior to 8:00 a.m. New York time or (ii) the immediately succeeding Business Day if it is received by email after 8:00 a.m. New York time on a Business Day or at any time on a day which is not a Business Day.

(c) CLOSING. The Closing of a Purchase Notice shall occur after the market close six (6) Business Days after the Clearing Date, whereby the Investor, shall deliver the Investment Amount (minus the Clearing Costs), by wire transfer of immediately available funds to an account designated by the Company.

Section 5.1 SHORT SALES AND CONFIDENTIALITY. Neither the Investor, nor any affiliate of the Investor acting on its behalf or pursuant to any understanding with it, will execute any Short Sales during the period from the date hereof to the end of the Commitment Period. For the purposes hereof, and in accordance with Regulation SHO, the sale after delivery of a Purchase Notice of such number of shares of Common Stock reasonably expected to be purchased under a Purchase Notice shall not be deemed a Short Sale. The Investor shall, until such time as the transactions contemplated by this Agreement are publicly disclosed by the Company in accordance with the terms of this Agreement, maintain the confidentiality of the existence and terms of this transaction and the information included in the Transaction Documents.

So here is what is happening... Virus says I need $100k. Lender shorts the hell out of the stock for 6 days and then pays 95% of the lowest price they get. Virus needs more cash, so they say... I need $100k. Lender shorts the stock for 6 days and then pays 95% of the lowest price. Virus needs $100k. Lender shorts....

Question is... is it toxic debt? yes and no. It will likely destroy retail before the third Purchase. Can the company stop borrowing? Yes and no. They will need to borrow pretty heavily to pay for the already used toxic notes. They are obligated to use a lot already. Anyone have that number? Somewhere around a milly? $1.5 mil? Every $100k lending will dilute the stock 70mil? 80 mil? 100mil?

Anyone see what happened to the stock when AG started selling 100 mil shares at a time? That was when prices were much higher. As the price drops, a hell of a lot more shares are sold.