Gaithersburg, MD, Oct. 13, 2020 (GLOBE NEWSWIRE) -- Verus International, Inc. (“Verus” or the “Company”) (OTCQB: VRUS) is providing this strategic overview in order to update investors on significant corporate events. The Company has begun implementing a strategic plan that it believes will position Verus for an eventual uplist to a major exchange. This plan has multiple, well-defined steps that management believes will lead to significant growth over the next four quarters.
Key elements of this strategy that are currently in process include:
Streamlining of operations, most notably the termination of the ZC Top Apparel Manufacturing (“TAM”) agreement and deemphasis of non-core prospects outside of the consumer products space;
Increased focus on domestic sales to bolster discussions with U.S. based sources of financing;
Completion of a reverse stock split, whereby the shares of the Company’s Common Stock will be combined and reclassified into one share of Common Stock at a ratio of 1-for-500;
Exploration of potential mergers with like-sized or larger companies; and
Partnership discussions with major investment banks
“We were prepared to begin execution of this plan in early 2020, but are finally able to begin the process of removing some of the barriers to achieve even faster growth. Our planning was in conjunction with ongoing discussions with potential partners who are now seeking us out and after consultation with some very large consumer-products-oriented investment banks. Over the last several months, with extensive input from third-party consumer product experts, we assembled a check list of changes and actions that we determined were necessary to take Verus to the next level,” explained Verus CEO Anshu Bhatnagar. “As we are now implementing those changes, and have updated our forecast for the next four quarters, we also determined this reverse stock split ratio is most appropriate to move us toward achieving the minimum $4.00 per share price requirement for an uplist to the NYSE, while still leaving significant organic growth in the interim. The reverse stock split is also a necessary move because our sub-penny per share price had become a stumbling block to promising merger and partnership opportunities.”
“We cannot be certain of the outcome of current or future discussions, but this new capital structure will greatly enhance our ability to complete shareholder friendly transactions with larger, more mature companies in our space,” said CEO Bhatnagar. “The timing of this change in our capital structure is directly related to the active exploration of those types of potential next-level transactions. Simply put, the size and quality of our potential partners has increased significantly in the second half of 2020, so repositioning ourselves as a more institutional company was essential. This strategic plan will explore all options to create shareholder value, including organic, acquisition and other types of transactions.”
Today’s announcements mark the latest chapter in a consumer product growth cycle that experienced the Company transitioning from a technology company to a food company during 2017, to a branded food company during 2018 and 2019, and finally to a multi-category consumer products company during 2020. With expertise gained via the Eliot’s Nut Butters acquisition, during 2021 Verus plans to grow its online and e-commerce presence. The Company believes that by mid-2021 it will have a presence in most major retail channels, including drug, grocery, convenience, specially, and online.
Forecast and Business Update
Based on current trends and the execution of its strategic plan, Verus is forecasting a $50 million revenue run rate in 2021. Operationally, the Company believes that its domestic revenue will equal or surpass its international revenue during the year, with the CBD category being a key growth driver. The international business is expected to continue to grow, but domestic sales will be the primary focus. Verus is currently targeting minimum of 40% gross profit margins for each of its domestic lines, with some CBD lines commanding much higher margins. In terms of sales trends, the Company is pleased to report a fifth reorder of Big League Foods candy by Big 5 Sporting Goods, a stronger than expected reorder cycle considering the shortened season for Major League Baseball. Verus has also completed its redesign of the Pachyderm CBD product line and will unveil this new packaging later this month.
“We have tremendous potential in our existing business lines, but we want investors to know that we are exploring many options to grow our Company both organically and via strategic partnerships, “said CEO Bhatnagar. “Our goal has always been to make Verus a household name, but to do that we need scale. To obtain that scale, we need new types of partners that can expedite our growth into an institutional-quality company. We believe our new strategy will open doors that were previously closed while driving growth significantly over the next four quarters.”
About Verus International
Verus is a global, emerging multi-line consumer packaged goods (CPG) company developing branded product lines in the U.S. and on a global basis. The Company trades on the OTC market (OTCQB: VRUS). Investors can find real-time quotes and market information for the Company on www.otcmarkets.com. Additional information is also available at the Company’s website, www.verusfoods.com, the Eliot’s Nut Butters website, www.eliotsnutbutters.com; and via the official Twitter feed @Verus_Foods, the Big League Foods subsidiary Twitter feed @BigLeagueFoods and the Pachyderm Labs subsidiary Twitter feed @PachydermLabs.
Safe Harbor Statement
This press release contains certain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are identified by the use of the words “could,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “may,” “continue,” “predict,” “potential,” “project” and similar expressions that are intended to identify forward-looking statements. All forward-looking statements speak only as of the date of this press release. You should not place undue reliance on these forward-looking statements. Although we believe that our plans, objectives, expectations and intentions reflected in or suggested by the forward-looking statements are reasonable, we can give no assurance that these plans, objectives, expectations or intentions will be achieved. Forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from historical experience and present expectations or projections. Actual results could differ materially from those in the forward-looking statements and the trading price for our common stock may fluctuate significantly. Forward-looking statements also are affected by the risk factors described in the Company’s filings with the U.S. Securities and Exchange Commission. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.
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