Verus International Inc (OTCMKTS:VRUS) has been a top pick for us here at Insider Financial. We’ve been talking about Verus since it was trading at just $.0046 on February 13, 2019. Since then, we’ve only gotten more bullish on the company and its prospects, especially now that the company is getting into the N95 mask business. Verus International is now a coronavirus stock.
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.
N95 Mask Business
Verus International has acquired a controlling 51% interest in ZC Top Apparel Manufacturing, Inc. (“ZC Top”), a Philippines-based maker of reusable N95 fabric masks and biohazard suits.
ZC Top produces a highly sought-after, premium mask that is N95 compliant and constructed of a washable shell and a multi-layer filter than can provide protection for three days before replacement. The multi-layer filter consists of BFE99, PFE99 melt-blown and spun-bond polypropylene, which are the same materials used in medical surgical and N95 disposable masks. The masks also feature an activated carbon filter that functions like a high-efficiency particulate air (HEPA) filter, giving an additional layer of protection compared to a regular N95 mask.
The ZC Top masks also incorporate exhalation valve technology to facilitate smoother breathing, along with cotton construction to create a high-quality reusable mask that is more comfortable and cost effective than many other anti-viral mask designs.
The new ZC Top subsidiary currently has request for quotes (RFQs) from the U.S. Government and other governments, agencies and sellers on multiple continents. The Philippines-based facility has a peak production capacity of ten million masks per month. Based on pending orders, the Company believes that it can operate at near capacity for the foreseeable future. Verus International CEO Anshu Bhatnagar said:
“We have international trade experience that is highly sought after in this current environment. We were approached early in the COVID-19 crisis by the management team at ZC Top, who were experiencing an overwhelming number of requests for protective gear from governments and other entities around the world. We are providing the funding and other resources to begin filling these pending orders as quickly as possible. We are not yet prepared to provide revenue estimates, but based on initial demand, we believe protective gear could eclipse all of our existing revenue sources.”
Next Major Event
Verus International will provide additional details on its N95 mask business during the upcoming Fiscal 2019 financial results conference call on Monday, April 13, 2020 at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time). The 10-K will be filed with the SEC prior to the call and will also include certain Fiscal 2019 Q4 results (through October 31, 2019). Based on preliminary results, Verus can report the following:
- Q4 fiscal 2019 will represent another record quarter;
- Revenue growth will be triple digit for the fifth quarter in a row; and
- Gross margins will show continued improvement
Currently trading with a market cap of $47 million, Verus International is an exciting play in the small cap universe. As we said earlier, Verus International is a small-cap stock with bright prospects that has been flying under the radar. At current levels, Verus stock is a discount entry opportunity and an opportunity that won’t be under the radar for much longer. Our next target is new highs above $.0373 a share.
Good luck to all (except the shorts)!
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Disclosure: We have no position in Verus International and have not been compensated for this article.