Here is Why Verus International Stock is Making Big Move
As the market continues to rebound, many stocks are rising for a wide variety of reasons, and it is important for investors to keep an eye on those. One of the small-cap stocks to have made a significant move in recent times is that of Verus International Inc (OTCMKTS:VRUS).
The stock rallied by as much as 31% this past Friday after the company made a major announcement, and it could be worthwhile for investors to look into the company more closely. The company is involved in the consumer packaged goods space, which develops a range of product lines in the United States and the Middle East. On top of that, Verus also manufactures medical protective supplies at a global level.
This past Friday, Verus announced that it signed up the services of a global distributor by way of which its CBD products under the Pachyderm Labs brand are going to be distributed across the United States. The distributor in question is among the biggest operators in the multi-state vertically integrated cannabis space and has significant experience in both product placement as well as point of sale promotions.
It is a major development for Verus, and the reaction in the market was understandable. Following the rally on Friday, it will be interesting to see if the stock can continue on the upward curve this week. Investors could do well to keep a close eye on the Verus stock today.
The distribution deal will help Verus in getting its products in convenience stores, gas stations, and other retail outlets, which generally sell CBD products. It should also be kept in mind that CBD has grown quite rapidly in recent times, and entry into this space is probably being seen as a major positive by investors. The Pachyderm products are initially going to be launched in Texas and Florida.
In the beginning, the products are going to be made available in 10,000 retail outlets, and within 24 months, the distributor aims to expand the number of sores to as many as 30,000. Under the terms of the agreements, the two products that are going to be distributed include U-Try CBD and Elephant Hemp. The Chief Executive Officer of Verus, Anshu Bhatnagar, stated that the impact of this deal on the company’s revenues could be significant and could be seen through the rest of 2020 and beyond.
In this situation, investors ought to remember that Verus performed impressively in its fiscal quarter results, which were announced back in June. The revenues for the quarter hit $4.6 million, which is the second-highest that Verus has ever managed to generate in the second quarter. It reflects a rise of as much as 58% from the year-ago period.
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