(MENAFNEditorial) GAITHERSBURG, MD, Sept. 24, 2018 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE - RealBiz Media Group, Inc. (OTC: RBIZ), currently operating as Verus Foods (the 'Company'), today announced the financial results for its third quarter of fiscal 2018, ended July 31, 2018. In conjunction with these results, the Company is also providing a corporate update.
In terms of Q3/2018, management is noting the following items of importance:
Compared to the same periods in 2017, the Company posted a 77% increase in sales for the first nine months of fiscal 2018 and a 31% year-over-year increase for Q3 2018. The company achieved a gross margin of 16.3%, within the higher range of expectations. Q3 2018 results were significantly impacted by the inclusion of one-time line items associated with the reorganization and a large, conservative reserve for certain default provisions of the convertible notes payable. We expect that much of this reserve will be reversed in a future quarter. On an organizational basis, the Company successfully completed the spin-off of the NestBuilder real estate division. The Company undertook a complete reorganization of its Dubai operations, forming Verus Middle East General Trading. This change will have major long-term ramifications, because Verus now controls 100% of its intellectual property and brands; has a broader product license and can begin to sell non-food items (previously restricted to food only) into the same retail network; and is now completely independent with autonomous control over its GCC operations. 'This is a quarter that ended with the spin-off of the real estate division, so it will be the last quarter that includes financial information incorporating the legacy RealBiz operations,' explained Verus CEO, Anshu Bhatnagar. 'Investors can look at this as the 'kitchen sink' quarter, filled with charges and not yet reflecting the upcoming revenue that will be generated from our newest order and major reorganization in Dubai. In addition, because we reached our authorized share limit, we will need to make some important changes to satisfy the terms of our existing debt. We are currently in discussions to recapitalize the company to remedy this situation.'
On a forward basis, the Company would like to provide the following update:
Verus has filed all necessary paperwork for a name change to Verus International, Inc. and a symbol change to VRUS and is awaiting final processing of these changes by FINRA. The Company is completing the logistical arrangements of its new multi-product order, which will involve as many as a dozen products sourced from six or more countries. This new mixed-product order is expected to ship at a rate of approximately $1.0 million per month when it commences in the next several weeks. Verus is currently in discussion with the remaining convertible note holders concerning the potential payoff of the notes. As part of a proposed recapitalization, the Company is in active discussions with a syndicate of investors who have expressed an interest in replacing the existing debt structure along with funding a portion of current backlog. Verus can confirm that it is in very late stage discussions with two M & A candidates, one that would represent a line extension into existing markets; and a second that would create significant vertical integration opportunities and new facilities on two continents. 'We are attempting to forge a path that minimizes dilution, but maximizes growth,' said Verus CEO, Anshu Bhatnagar. 'We have the funding right now through our trade financing to achieve annual revenue of close to $20M if everything falls into place, but clearly that is just a small measure of what we can do with more capital to deploy. While our newest contract has flexible financing and can expand to meet our customer's needs, our legacy contracts are performing at a maintenance level pending different forms of additional financing. So, our focus is on strategies that will unlock these sources of revenue as quickly as possible.'
Due to the nature of multiple, very late-stage negotiations, the Company has decided to hold its investor call in coming weeks rather than immediately after this earnings release, so that these strategic initiatives can become part of the discussion. Although there is no guarantee that Verus will be successful in completing these important strategic measures, each of these projects are in the final stages, with resolution expected over the next several weeks.
In order to help investors, partners and customers track the company's product line expansion, Verus intends to post ongoing operational updates, including photos of packaging and in-store displays, on its Twitter feed @Verus_Foods.
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. (OTC: RBIZ) trades on the OTC marketplace for early stage and developing U.S. and international companies. Investors can find Real-Time quotes and market information for the company on 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.
Contacts Investor Contact:
MKR Group Inc.
Todd Kehrli or Mark Forney
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