Verus International, Inc. (“Verus” or the “C
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Posted On: 03/26/2019 11:17:49 AM
Verus International, Inc. (“Verus” or the “Company”) is pleased to announce that it has received $1.45 million in funding, as detailed in a Form 8-K filed today. The notes were placed with two separate institutional-quality shareholders; individuals who had already invested in Verus through prior purchases. Importantly, this funding places the stock in the hands of friendly equity-oriented investors who expressed a desire to increase their stake in the Company.
Concurrent with this funding, Verus is pleased to announce that it has retired all of the variable rate convertible notes (“toxic notes”) held by four separate creditors. This action is particularly important because it will enable Verus to remove a sizeable reserve from its balance sheet and avoid paying millions of dollars in penalties and other charges. As part of this multi-party agreement, the Company’s other key note-holder, Donald Monaco, has agreed to extend his $530,000 note for an additional nine months, with no significant change in terms. These actions are now completed and signed off by all parties, giving the Company full releases from all prior note holder provisions.
“This marks the culmination of nearly two years of effort to put behind the legacy of RBIZ-related issues. These negotiations were difficult and long, with as many as 15 parties involved in the process. But the end result was well worth the effort, because we negotiated terms that avoided any default interest or fees, were at a substantial discount to the standard premium, and ended the threat of significant dilution from our existing note holders,” explained Verus CEO Anshu Bhatnagar. “Our goal was to create a structure that minimized dilution, but left us with a good foundation to finally begin our growth stage. We know both investors well and they represent a new stage in our goal to move toward institutional-quality funding sources that carry better terms and involve long-term oriented partners.”
The Company is currently working to complete its 10-K, which was delayed while the debt settlement was in process. The 10-K will be filed after reviewing sections that may have been impacted by the agreements announced today. Verus will provide a comprehensive update on its strategic plan in conjunction with the filing of these year-end financials.
“The impact of this funding cannot be understated,” said Bhatnagar. We needed to clean up these existing notes before we could commence our other growth initiatives. With the delinquent debt now erased, we can finally move ahead with a master plan that has been waiting for a green light for many months. Our goal is to uplist to a major exchange in 2019 and to grow our business both organically and through mergers and acquisitions. This financing marks the initial step in that process.”
This development also ends the Company’s self-imposed quiet period. Investors can expect a resumption of more frequent corporate communications and ongoing product announcements via the official Twitter feed @Verus_Foods.
Concurrent with this funding, Verus is pleased to announce that it has retired all of the variable rate convertible notes (“toxic notes”) held by four separate creditors. This action is particularly important because it will enable Verus to remove a sizeable reserve from its balance sheet and avoid paying millions of dollars in penalties and other charges. As part of this multi-party agreement, the Company’s other key note-holder, Donald Monaco, has agreed to extend his $530,000 note for an additional nine months, with no significant change in terms. These actions are now completed and signed off by all parties, giving the Company full releases from all prior note holder provisions.
“This marks the culmination of nearly two years of effort to put behind the legacy of RBIZ-related issues. These negotiations were difficult and long, with as many as 15 parties involved in the process. But the end result was well worth the effort, because we negotiated terms that avoided any default interest or fees, were at a substantial discount to the standard premium, and ended the threat of significant dilution from our existing note holders,” explained Verus CEO Anshu Bhatnagar. “Our goal was to create a structure that minimized dilution, but left us with a good foundation to finally begin our growth stage. We know both investors well and they represent a new stage in our goal to move toward institutional-quality funding sources that carry better terms and involve long-term oriented partners.”
The Company is currently working to complete its 10-K, which was delayed while the debt settlement was in process. The 10-K will be filed after reviewing sections that may have been impacted by the agreements announced today. Verus will provide a comprehensive update on its strategic plan in conjunction with the filing of these year-end financials.
“The impact of this funding cannot be understated,” said Bhatnagar. We needed to clean up these existing notes before we could commence our other growth initiatives. With the delinquent debt now erased, we can finally move ahead with a master plan that has been waiting for a green light for many months. Our goal is to uplist to a major exchange in 2019 and to grow our business both organically and through mergers and acquisitions. This financing marks the initial step in that process.”
This development also ends the Company’s self-imposed quiet period. Investors can expect a resumption of more frequent corporate communications and ongoing product announcements via the official Twitter feed @Verus_Foods.
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