Gaithersburg, MD, Nov. 09, 2020 (GLOBE NEWSWIRE) -- Verus International, Inc. (“Verus” or the “Company”) (OTC Pink: VRUS) is pleased to provide this update on the strong growth trends in its Pachyderm Labs division (“Pachyderm”). The Company is excited to report that it has sold out the majority of its CBD product inventory and now has a backlog of orders that will be fulfilled following the next production run.
As previously reported, Pachyderm recently attended a major industry expo in Florida, its first trade show in many months. The team primarily used this trade show as a networking event to show off newly designed packaging to potential customers. Feedback of the new branding was overwhelmingly positive. Even without a booth presence, the team secured three large initial orders totaling close to $200,000, in addition to smaller starter orders. As a result, Pachyderm now has an unfilled backlog of approximately $100,000 in new orders, with potential reorders on the horizon from existing customers and new business from ongoing geographic expansion.
Based on current trends and customer feedback, Pachyderm believes that it has the right product lineup in place to continue its stair-step growth strategy. This approach is designed to enable continued growth while minimizing inventory risk during the roll-out phase, with a goal to build a larger in-stock inventory as the brand gains traction. Following the success of this return to the trade show circuit, the Pachyderm team is making plans to attend additional events, preferably with a booth presence in the future.
“We are extremely pleased with the reaction to our new branding,” explained Verus CEO Anshu Bhatnagar. “One of the misconceptions about the CBD space is that it is already saturated, but it is no different than any other growing consumer products category. High quality products with attractive presentation stand out and are sought after by wholesalers and retailers. We had strong proof of that from this latest show and are really encouraged by the feedback on our new packaging. We have the capacity in our Texas facility for much larger order flow without near-term investment, so we are looking forward to reaching the kind of scale that will really begin to impact the bottom line. This is a prudent approach to growing our business, scaling up our production, and expansion in tandem. We will fill those empty shelves in Texas in short order and be ready for the next step in what we believe is an open-ended growth plan.”
Based on new relationships, including those secured at the recent trade show, Pachyderm believes that it can accelerate its entry into the convenience store market more rapidly than previously expected. The division is currently in the planning stage with 14 major distributors who will carry the Pachyderm products in their existing distribution networks, which together cover approximately 30,000 locations. The roll out will be regional, with Phase one targeting eastern states such as New York and Connecticut; along with selected southern and southeastern states, including Alabama, Georgia, Tennessee, Florida, and Texas, with a particular emphasis on Dallas, Houston, and San Antonio due to their proximity to the Company’s Houston facility. Phase two will cover additional states in these regions, including Louisiana, Mississippi, Kentucky and Ohio; along with a move into the West, starting with Arizona and Utah. With these relationships now in place, Pachyderm believes it can rapidly become a known brand throughout the United States. The current plan is to complete both phases of this roll out by the summer of 2021.
Additional Operational Update
As an update to the recently announced reverse stock split, the timeline for completion depends upon regulatory approvals, but will include a 20-day waiting period after mailing of the required proxy materials. Verus management will determine the new, significantly lower authorized share amount after finalizing existing conversations with M&A specialists, in order to have enough authorized shares for one or more of the potential M&A candidates, which are significantly larger than past prospects. While the outcome of M&A discussions is unknown at this time, the process is continuing and remains on track.
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 (OTC Pink: 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 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