Verus International Issues Update on zc Top Apparel Manufacturing

Rhea-AI Summary

Verus International, Inc. (OTCQB: VRUS) has issued a Demand and Rescission Letter to ZC Top Apparel Manufacturing, Inc. due to a breach of contract regarding their 51% controlling interest. Verus seeks the return of a $100,000 cash payment along with associated fees within ten days. CEO Anshu Bhatnagar emphasized that the partnership with TAM became unsustainable. The company is redirecting its focus on core consumer product businesses and planning a strategic update by mid-October to outline its growth roadmap for 2021.

Positive

• Verus plans to refocus on core consumer product businesses.
• The company experienced early profitability in its PPE efforts.

Negative

• TAM breached contract terms, leading to potential financial losses.
• The situation indicates possible instability in partnerships.

Gaithersburg, MD, Oct. 08, 2020 (GLOBE NEWSWIRE) -- Verus International, Inc. (“Verus” or the “Company”) (OTCQB: VRUS) reported that it issued a Repayment and Notice of Rescission of Transaction (the “Demand and Rescission Letter”) to ZC Top Apparel Manufacturing, Inc. (“TAM”), as a result of TAM’s failure of contractual performance and breach of contract. This Demand and Rescission Letter was issued due to TAM not registering the controlling interest of 51% in the name of the Company as required under the Binding Term Sheet dated April 3, 2020. Pursuant to the terms of the Demand and Rescission Letter, all obligations under the Binding Term Sheet are rescinded and a demand made for immediate return of the cash consideration of $100,000, paid by the Company, plus fees and costs to be determined, within ten (10) days from the date of the Demand and Rescission Letter. Further details on this transaction are available via a Form 8-K as filed on Edgar at the U.S. Securities and Exchange Commission’s website, www.sec.gov.

“We approached the PPE business as a time-sensitive opportunity, with full knowledge that this might involve a narrow window and relatively short time frame for success,” said Verus CEO Anshu Bhatnagar. “We were glad to have some early success, which made this a modestly profitable effort. However, as we moved farther into this arrangement with TAM, the potential to extend this relationship into a long-term partnership became less desirable on multiple levels. One of the essential elements in any foreign-run operation is the importance of maintaining a solid and open working relationship, something that grew increasingly difficult. This business represented an attempt to be nimble and expeditious in capturing a market opportunity, but unfortunately, TAM did not meet our standards for a long-term partnership. Their breach of contract made continued engagement impossible.”

Business Update

Today’s news is part of a heightened strategic effort to focus more aggressively on Verus’ core consumer product businesses. The Company is currently re-analyzing its three main domestic business units and updating its complete roadmap for continued organic growth into 2021. As part of this process, management intends to provide analysts and investors with a corporate strategic update by mid-October.

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 Adult 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.

Contacts
Investor Contact:
MKR Group Inc.
Todd Kehrli or Mark Forney
vrus@mkr-group.com

FAQ

What recent action did Verus International take regarding ZC Top Apparel Manufacturing?

Verus International issued a Demand and Rescission Letter to ZC Top Apparel Manufacturing due to their breach of contract.

What amount is Verus International seeking from TAM?

Verus is demanding the return of $100,000 plus fees and costs from ZC Top Apparel Manufacturing.

What did CEO Anshu Bhatnagar say about the partnership with TAM?

Bhatnagar stated that the partnership became less desirable and TAM did not meet the company's standards.

When can investors expect a strategic update from Verus International?

Verus International plans to provide a corporate strategic update by mid-October.

What does the Demand and Rescission Letter indicate about Verus's business direction?

It indicates a heightened focus on core consumer product businesses and a reevaluation of their operational strategies.