Gaithersburg, MD, Jan. 04, 2018 (GLOBE NEWSWIRE) -- RealBiz Media Group, Inc. (OTCQB: RBIZ), currently operating as Verus Foods (the “Company”), announced today that based on pending sources of new funding, the Company does not intend to allow any of the previously contracted notes to convert into shares. The most recent transaction in this process involved the retirement of a note from PowerUp Lending Group totaling $57,592 on December 29, 2017. The pace of retirement of the existing convertible debt will depend upon receipt of various forms of financing currently under negotiation, so the timeline on reducing and eliminating this debt is not yet finalized. But, based on recent events, Verus has set a goal to eliminate this debt during 2018.
As part of that plan, Verus expects to receive new funding from former RealBiz Chairman Don Monaco as soon as the shares from the Monaker Group/RealBiz settlement are issued. Investors should be aware that this funding from Mr. Monaco was negotiated separately by Verus Foods and was not part of the Monaker Group/RealBiz settlement, but is dependent upon fulfillment of that settlement prior to receipt of funds. Details of the Monaco funding will be released after receipt, but can be considered more favorable than existing debt.
“While we are in discussions with multiple sources of working capital, the funding from Don is essential to move forward, because it can be used to prevent near-term conversions and fund some shipment growth before it is fully deployed to retire debt,” commented Verus CEO Anshu Bhatnagar. “Preventing shareholder dilution is important, but so is revenue growth, which can lead to more favorable and traditional forms of working capital. Our goal in 2018 is to replace all of our current debt with new and better forms of capital, so this gives us the ability to start that process in a meaningful way. Our capital program will involve a stair-step approach as we avoid dilution by pushing out existing debt conversion dates, while gradually eliminating less favorable forms of debt.”
Revenue growth is very important to the Company, because some verified forms of working capital require a minimum revenue level to commence. Because of this, Verus plans to take a measured approach to debt reduction, with a goal to have zero dilution from debt conversion, but also with application of funds to create growth to reach working capital thresholds.
Due to the considerable number of pending corporate developments, investors should expect a heightened number of press releases concerning corporate actions during the month of January 2018. In that regard, the Company expects to report on spin-off, reverse split, name/symbol changes, and will provide an update on backlog prior to the upcoming earnings release.
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.
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