VERUS INTERNATIONAL REPORTS RECORD THIRD QUARTER RESULTS - Seite 2

On a forward basis, the Company is providing the following update and guidance:

• Verus continues to engage with retail customers that delayed or suspended orders due to store closures and sports season uncertainty, and expects to sign some of these target chains during the fall and early winter seasonal buying periods;
• The Big League Foods (“BLF”) division expects to have product in four chains, T.J. Maxx, Marshalls, Meijer and Big Five Sporting Goods in October 2020;
• The newly acquired Eliot’s Nut Butters is already preparing for a product line expansion;
• National Hockey League (“NHL”) candy products are in development, with an in-store target to coincide with the start of the NHL season during December 2020;
• The Pachyderm Labs division is now 44 products strong with an initial wholesale distribution launch through 20 distribution warehouses across 6 states;
• Verus reduced its convertible debt by approximately 50% from approximately $1.3 million at the end of Q3 2020 to approximately $0.6 million as of September 18, 2020; and
• The Company completed its authorized equity funding under its effective S-1 with White Lion Capital.

“We made a conscious effort to become more U.S.-centric in our sales efforts this quarter, based on better margins and opportunities for growth in our domestic lines,” said CEO Bhatnagar. “We also made some tough decisions in terms of our debt and financing activities, which we will describe in detail during our earnings call. Simply put, we took a series of actions designed to immediately reduce our cash burn, increase our working capital, and put us in a position to gain commercial credit. Our goal is to end our reliance on the kind of convertible debt treadmill that left us with a chronic shortage of working capital in the past. We have the best product line in our history and believe that our way back will be paved via increased growth, so that is our goal through the remainder of 2020.”

Financial Results and Corporate Update Conference Call

Verus management will host a conference call for analysts and investors on Tuesday, September 22, 2020 at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) to discuss the Company’s financial results and provide a corporate update.

To listen to the live conference call, parties should connect approximately 15 minutes prior to the start of the call as follows:

• Dial-in number: [phone]

Please note there is no access code required to join the call.