$VRUS: NEWS!! VERUS INTERNATIONAL PROVIDES OPERATIONAL UPDATE
February 25, 2020 07:00 ET | Source: Verus International, Inc.
Gaithersburg, MD, Feb. 25, 2020 (GLOBE NEWSWIRE) -- Verus International, Inc. (“Verus” or the “Company”) (OTCQB: VRUS) is providing the following operational update as part of a plan to issue updates during the period leading up to the completion of the delayed fiscal 2019 Form 10-K, and subsequent filing of the fiscal 2020 Q1 Form 10-Q, which is due March 16, 2020.
Audit Update
When the Company decided to switch to a larger audit firm, it did so with the goal to engage a much larger audit firm to improve its standing before up-listing to a national exchange. Instead of being a bridge to greater institutional cache, the move to a top ten national audit firm proved to be overwhelming on multiple levels, particularly in terms of the unresolved discussions. After careful consideration, it became mutually apparent that after providing requested audit documentation and expending significant time, Mayer Hoffman McCann P.C. (“MHM”) was not going to be able to complete the audit within the Company’s required timeline. As noted in the Company’s recently filed Form 8-K, MHM recognized this reality and elected to resign as our audit firm mid-audit. On a positive note, the Company has already completed most of the financial audit efforts, so a new audit firm will be able to hit the ground running and achieve a timely audit completion.
The Company’s position regarding the unresolved discussions with MHM as identified within its recently filed Form 8-K is unchanged from its original position when the related financials were originally disclosed by public filing. Accordingly, the Company does not believe such unresolved discussions are material to the prior period financial statements, including the annual and interim periods affected, and therefore, does not believe restating the financial statements previously filed is required.
To complete the fiscal 2019 financial audit as timely as possible, the Company has identified a new audit firm, which it expects to engage and announce shortly via Form 8-K. As this has been a humbling experience and will require more time, the Company’s current goal is to file the fiscal 2019 Form 10-K during March 2020, followed very closely by the fiscal 2020 Q1 Form 10-Q.
Marketing Initiatives, NGA Show
As the food show season is underway, the Company has a booth presence this week at the National Grocers Association (“NGA”) show in San Diego, California, building upon the great success experienced at the recent (big box oriented) Las Vegas sports licensing show, where our first national retailer was signed. The NGA provides us access to a different class of buyers -- key grocery stores that are on our customer wish list. Buyers representing more than 7,000 stores attend the NGA show with their wallets in hand, spending over $500 million on the NGA show floor. In advance of this important event, the Company sent sample packages to attending buyers in anticipation of high-level meetings and considerable booth traffic.
The Company’s recent chocolate basketball tweet generated a lot of questions, and that basketball-themed candy is part of its new product samples. We can now confirm that we are in active discussions with NBA teams, which is our next league target. Our growing product line is really improving our ability to attract the attention of larger retailers, along with other licensing partners.
Operational Update
Operationally, the Company is pleased to report that its bulk shipment of gummies has arrived from its supplier in Spain, so packaging and shipping can begin. This will put us ahead of schedule for our goal to have all 30 Major League Baseball (“MLB”) teams represented on a national scale. As our first national retail customer can’t be revealed just yet, we are excited to share that it is one of the 25 largest retailers in the world. Gaining shelf space at top tier customers helps enhance our sales efforts, so we are looking forward to seeing our new product packaging and gummy shapes on shelves throughout the U.S.
Our Texas facility is progressing as planned, but like many other manufacturers, we have experienced some delays due to the current situation in China. These delays will not impact our ability to meet demand, which we can fill out of third-party facilities until the final pieces of our assembly line arrive and become operational.
Furthermore, our MLB business will be our fastest growing segment in the first half of the year, however all of our product lines are experiencing strong customer demand, which will provide the potential to diversify revenue sources over the next several quarters. Despite some recent delays, we are standing by our projection for triple-digit growth during 2020.
About Verus International
Verus is a global, emerging multi-line consumer packaged goods (CPG) company developing branded product lines in the U.S., South America, and the Middle East. 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, and via the official Twitter feed @Verus_Foods and the Big League Foods subsidiary Twitter feed @BigLeagueFoods.
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.
Contacts
Investor Contact:
MKR Group Inc.
Todd Kehrli or Mark Forney
vrus@mkr-group.com
http://www.globenewswire.com/news-release/202...PDATE.html
February 25, 2020 07:00 ET | Source: Verus International, Inc.
Gaithersburg, MD, Feb. 25, 2020 (GLOBE NEWSWIRE) -- Verus International, Inc. (“Verus” or the “Company”) (OTCQB: VRUS) is providing the following operational update as part of a plan to issue updates during the period leading up to the completion of the delayed fiscal 2019 Form 10-K, and subsequent filing of the fiscal 2020 Q1 Form 10-Q, which is due March 16, 2020.
Audit Update
When the Company decided to switch to a larger audit firm, it did so with the goal to engage a much larger audit firm to improve its standing before up-listing to a national exchange. Instead of being a bridge to greater institutional cache, the move to a top ten national audit firm proved to be overwhelming on multiple levels, particularly in terms of the unresolved discussions. After careful consideration, it became mutually apparent that after providing requested audit documentation and expending significant time, Mayer Hoffman McCann P.C. (“MHM”) was not going to be able to complete the audit within the Company’s required timeline. As noted in the Company’s recently filed Form 8-K, MHM recognized this reality and elected to resign as our audit firm mid-audit. On a positive note, the Company has already completed most of the financial audit efforts, so a new audit firm will be able to hit the ground running and achieve a timely audit completion.
The Company’s position regarding the unresolved discussions with MHM as identified within its recently filed Form 8-K is unchanged from its original position when the related financials were originally disclosed by public filing. Accordingly, the Company does not believe such unresolved discussions are material to the prior period financial statements, including the annual and interim periods affected, and therefore, does not believe restating the financial statements previously filed is required.
To complete the fiscal 2019 financial audit as timely as possible, the Company has identified a new audit firm, which it expects to engage and announce shortly via Form 8-K. As this has been a humbling experience and will require more time, the Company’s current goal is to file the fiscal 2019 Form 10-K during March 2020, followed very closely by the fiscal 2020 Q1 Form 10-Q.
Marketing Initiatives, NGA Show
As the food show season is underway, the Company has a booth presence this week at the National Grocers Association (“NGA”) show in San Diego, California, building upon the great success experienced at the recent (big box oriented) Las Vegas sports licensing show, where our first national retailer was signed. The NGA provides us access to a different class of buyers -- key grocery stores that are on our customer wish list. Buyers representing more than 7,000 stores attend the NGA show with their wallets in hand, spending over $500 million on the NGA show floor. In advance of this important event, the Company sent sample packages to attending buyers in anticipation of high-level meetings and considerable booth traffic.
The Company’s recent chocolate basketball tweet generated a lot of questions, and that basketball-themed candy is part of its new product samples. We can now confirm that we are in active discussions with NBA teams, which is our next league target. Our growing product line is really improving our ability to attract the attention of larger retailers, along with other licensing partners.
Operational Update
Operationally, the Company is pleased to report that its bulk shipment of gummies has arrived from its supplier in Spain, so packaging and shipping can begin. This will put us ahead of schedule for our goal to have all 30 Major League Baseball (“MLB”) teams represented on a national scale. As our first national retail customer can’t be revealed just yet, we are excited to share that it is one of the 25 largest retailers in the world. Gaining shelf space at top tier customers helps enhance our sales efforts, so we are looking forward to seeing our new product packaging and gummy shapes on shelves throughout the U.S.
Our Texas facility is progressing as planned, but like many other manufacturers, we have experienced some delays due to the current situation in China. These delays will not impact our ability to meet demand, which we can fill out of third-party facilities until the final pieces of our assembly line arrive and become operational.
Furthermore, our MLB business will be our fastest growing segment in the first half of the year, however all of our product lines are experiencing strong customer demand, which will provide the potential to diversify revenue sources over the next several quarters. Despite some recent delays, we are standing by our projection for triple-digit growth during 2020.
About Verus International
Verus is a global, emerging multi-line consumer packaged goods (CPG) company developing branded product lines in the U.S., South America, and the Middle East. 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, and via the official Twitter feed @Verus_Foods and the Big League Foods subsidiary Twitter feed @BigLeagueFoods.
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.
Contacts
Investor Contact:
MKR Group Inc.
Todd Kehrli or Mark Forney
vrus@mkr-group.com
http://www.globenewswire.com/news-release/202...PDATE.html
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