GAITHERSBURG, MD, May 11, 2018 (GLOBE NEWSWIRE) --
RealBiz Media Group, Inc. (OTCQB: RBIZ), currently operating as Verus Foods (the “Company”), is providing this corporate update in order to communicate operational improvements in the Dubai-based operations and to answer selected shareholder questions concerning the recently filed 10-Q for Q1/2018.
First, the Company is happy to announce the formation of a new, wholly-owned subsidiary, Verus Middle East General Trading, LLC, which incorporates the operations formerly affiliated with the Company’s predecessor partner in Dubai. Prior to forming the new subsidiary, Verus shared some resources with this partner, which was focused on wholesale categories that do not fit the current Verus business. Although the Company will continue to work with its former partner on selected projects, this strategic change will enable Verus to more fully concentrate on developing its own, higher-margin brands for the region. Importantly, the new Middle East Subsidiary is 100% owned by the Company. This change will have no effect on current contracts or existing product categories.
“This marks an important evolution of our business in the region, giving us full control over our operations and positioning Verus to become an important source of branded-food in the retail space,” explained Verus CEO Anshu Bhatnagar. “The creation of the Subsidiary will enable us to more effectively penetrate our target markets in the Gulf Cooperation Council (GCC) countries and will serve as a springboard to expand into other large Middle Eastern and North African markets. The 100%-owned unit completes our goal to create a fully functioning and autonomous operation in this core market.”
Key changes affiliated with the formation of the Verus Middle East Subsidiary include:
In terms of the recently filed 10-Q for Q1/2018, the company would like to remind investors that the quarter reflects the interim period prior to funding and during the resolution of the legacy lawsuit. Clearly, this was a period of high legal expenses and distractions from operating the business and is not reflective of future trends. In answer to investor questions concerning Q1/2018, the following comments are applicable:
“We are very excited to begin the expansion of our own brands into our target markets,” explained Verus CEO Anshu Bhatnagar. “That process requires a very specialized skill set, involving multi-lingual packaging and country-specific requirements. For example, all packaging must include both English and Arabic. Being able to move these essential tasks in-house will enable us to build awareness at a lower cost. This also puts us on track for deeper penetration into retail channels, which carry higher margins and a greater variety of product categories. As this subsidiary begins to gain traction, our goal is to add an additional 22 sales people during 2018 to service the UAE more fully. Our improved financial status is finally enabling us to implement the steps necessary for growth, so we look forward to communicating the results of these initiatives in future updates.”
As previously reported, the SEC has approved the spin-off of the NestBuilder Real Estate Division and the distribution is set for May 18, 2018. Current RealBiz (RBIZ) shareholders will receive one (1) share of NestBuilder common stock for each three hundred (300) shares of RealBiz. The name and symbol change from “RealBiz” to “Verus Foods” will be filed shortly and communicated to investors in an upcoming update (pending symbol approval).
About RealBiz Media Group, Inc.
RealBiz Media Group, Inc. consists of two business segments: an international food subsidiary (Verus Foods) that sells products to customers worldwide; and a real estate digital media and technology company. RealBiz Media Group, Inc. (OTCQB: RBIZ) trades on the OTCQB venture stage marketplace for early stage and developing U.S. and international companies. Investors can find Real-Time quotes and market information for the company on www.otcmarkets.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 unanticipated events.
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