VERUS INTERNATIONAL ACQUIRES UAE-BASED FRENCH FRY OPERATION
Gaithersburg, MD, Sept. 03, 2019 (GLOBE NEWSWIRE) - Verus
International, Inc. ("Verus" or the "Company") (OTCQB:VRUS) is
pleased to announce that it has entered into an Asset Purchase
Agreement to acquire the french fry operations (the "Acquired
Assets") of an established supplier operating in the Middle East.
The consideration to be paid for the Acquired Assets will be
equivalent to 2,000,000 United Arab Emirates Dirham ($544,477 USD)
in cash, plus assumption of certain liabilities. The consummation
of the acquisition is subject to customary closing conditions and
is expected to close on or about September 6, 2019.
The Company expects the acquisition will begin contributing to
revenue within 30 days through existing sales relationships and
believes this acquisition will give it an established presence in
an important frozen food category in its existing hotel, restaurant
and similar markets. The french fries will be sold as branded
"This is not one of our previously-mentioned acquisition
candidates, but is a strategic opportunity to take over an
established product category being sold by a multi-line food
company in transition," explained Verus CEO Anshu Bhatnagar. "We
knew this supplier well and their french fry products are sold to
our target customer base, so this was the kind of strategic bolt-on
that we think can accelerate our expansion plans in frozen food.
This also aligns with our goal to concentrate on higher-margin,
branded products in our traditional markets. French fries were high
on our list of preferred growth initiatives, so the timing of this
transaction is ideal. We hope to add more of these product-line
acquisitions in the future, giving us additional sources of organic
growth, along with a more varied product mix that can generate new
business with existing customers."
U.S. Operational Update
Our second production run of Major League Baseball (MLB) ice
cream will target the same teams featured in our initial run, with
additional supply expected to reach stores during September. We
have already begun planning for the 2020 MLB season and are
assembling a significantly expanded launch program for early in the
coming year to capture maximum sales potential from Spring Training
through the World Series.
Our candy roll out is on schedule and we hope the roll-out will
double our footprint by the end of the 2019 baseball season. We
believe that candy locations will expand at a much quicker rate
than ice cream, due to the ease of stocking and lower cost per
item. Retailer feedback on both the candy and ice cream product
lines has been highly positive.
In addition to selected corporate commentary, interested
investors are encouraged to monitor upcoming product announcements
via the Company's official Twitter feed @Verus_Foods.
About Verus International, Inc.
Verus International operates an international food subsidiary
(Verus Foods) that sells branded consumer products to customers
worldwide. 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 website: www.verusfoods.com.
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 to 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
MKR Group Inc.
Todd Kehrli or Mark Forney
Verus (PK) (USOTC:VRUS)
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