Verus International Stock Surges 10% After Announcing Newest Operating Division
As the world continues to open up following the crisis brought about by the coronavirus pandemic, many industries which had seen their supply lines disrupted, and now many are now making a comeback in the markets. One of the companies that seem to have caught the attention today of market participants is Verus International Inc (OTCMKTS:VRUS), which has gained by as much as 10% so far this mooring. It is a consumer packaged goods company and is involved in developing lines of branded products in the Middle East as well as in the United States.
However, that is not all. Verus is also involved in the development of protective medical supplies, and since the onset of the coronavirus pandemic, such businesses have become quite important. The company made a major announcement today with regards to its medical arm this morning, and that could have been the reason behind the rally.
Verus announced the establishment of a new operating division named Pachyderm Labs, which is going to be involved in the CBD product market. CBD has become a highly dynamic industry in recent times, and the entry into this space must have come as a boost to its investors.
It is important to keep in mind that the Pachyderm Labs project has been in development for around a year, and Verus has already put all the building blocks in place. The company already has a comprehensive product line, distribution network, supply chain, and inventory in place. On top of that, initial customers have also been attracted, and hence, the business is already in a position to start generating revenues immediately.
The new venture is going to operate from Verus International’s facility in Houston, Texas, and it is going to function as both a warehouse as well as a manufacturing unit. The company will manufacture a range of products for two main brands, U-Try CBD and Elephant Hemp. The products are going to include as many as 12 different SKUs and will also offer health-boosting creams, oils, and edibles, among others.
Anshu Bhatnagaer, the Chief Executive Officer of Verus, stated that the company has received the first shipment of products worth $500000 and has clocked up $1.2 million worth of initial orders.
Earlier this week, the company released its financial results for the second fiscal quarter, and it proved to be a strong performance. Revenues proved to be a record high for the second quarter as Verus clocked $4.6 million, which reflected a year on year rise of as much as 58%. That being said, the company also posted an operating loss of $6.8 million, which was far higher than the $0.2 million loss it reported in the prior-year period. Net loss came in at $7.3 million.
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