Verus International
Momentum & Growth

Verus International Inc (OTCMKTS:VRUS) Rallies After $1.45 Million Financing

Shares of Verus International Inc (OTCMKTS:VRUS) have shone some life after the company announced plans to pursue organic growth. The announcement also comes on the confirmation that the company is eyeing listing on a major exchange in 2019. The stock has since bounced back from all-time lows, on renewed investor interest.

Catalysts And Share Price Analysis

A 150% plus spike in recent weeks is a development that has helped avert a further slid after a long period of subdued activity in the market. Verus International sentiments in the market have also inched higher, on the company announcing a new $1.45 million financing. The company has also confirmed a retirement of notes as part of an effort to clean the balance sheet of toxic debt.

Recent developments have helped strengthen investors’ confidence in the company’s long-term prospects. The stock has since resorted to trading in an uptrend, at the back of huge trading volume in the market.

VRUS Daily Chart

The stock has since bounced from the $0.0020 level to the $0.0053 handle. Given the strength of the upward momentum, Verus International could make a run for the $0.007 mark, the next substantial resistance level. A breach of the critical resistance level should affirm the emerging uptrend paving the way for the stock to make a run for its 52-week highs.

On the downside, sell-offs should experience support at the $0.004 level. A breach of the support level could open the door for short sellers to push the stock back to this year’s lows.

About Verus International

Verus International is a consumer food products focused company that sells branded products to consumer markets around the world. The company has operations in the Middle East, North Africa as well as the United Arab Emirates and Qatar.

$1.45 Million Capital Boost

Verus International has started bottoming out on confirming its balance sheet has received a $1.45 million boost. The investments come from two separate institutional investors that have indicated plans to acquire more stakes in the company. The new financing is a culmination of two years of effort and discussions with investors.

The company has consequently retired all the variable rate convertible notes held by four other creditors. With the payment, the company has consequently removed a sizeable reserve from its balance sheet thus avoiding paying millions of dollars in penalty charges.

According to Chief Executive Officer, Anshu Bhatnagar, the payment opens the door for the company to commence its growth stage finally.

“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 uplift 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,” said Mr. Bhatnagar.

The Chief Executive Officer has also confirmed that the company is in the process of completing its 10-K filling. The company had to delay the filling as it awaited the outcome of the debt payment.

Bottom Line

Verus International has paid a hefty price on failing to issue press releases highlighting ongoing operations as well as long-term plans. The stock has consequently lost a significant amount of market value as investors shied away. However, it appears the company is ready to turn the page, after the new capital injection.

The Chief Executive Officer has already confirmed plans to pursue a growth strategy that will once again reaffirm long-term prospects. After the underperformance of the past year, the company will have to issue frequent communications and make frequent product development announcements if it is to continue eliciting interest in the market.

Up-listing to a major exchange is a development that will enhance the stock’s exposure to institutional investors. However, the company faces an uphill task to achieve such a feat. Acquisition and mergers should go a long way in strengthening the stock’s sentiments among investors expected to sustain the upward momentum.

Verus International is still in a precarious position despite the recent spike. For early movers, waiting for further confirmations would be the right call, as the company is still shrouded in a lot of uncertainty when it comes to long-term prospects.

We will be updating our subscribers as soon as we know more. For the latest updates on VRUS, sign up below!

Disclosure: We have no position in VRUS and have not been compensated for this article.

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Verus International Inc (OTCMKTS:VRUS) Rallies After $1.45 Million Financing
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