TORONTO - Venus Concept Inc. (NASDAQ: NASDAQ:VERO), a leader in medical aesthetic technology, announced yesterday that its previous loan under the Main Street Lending Program has been acquired by Madryn Asset Management affiliates. The undisclosed purchase from City National Bank of Florida was followed by a new financing agreement providing Venus Concept with up to $5 million to meet immediate liquidity needs.
The transaction, which took place on Tuesday, included an initial draw of $2 million by Venus Concept after transaction fees. This bridge financing comes as part of the company's ongoing efforts to restructure debt and enhance financial stability.
Venus Concept had initially secured a $50 million loan through the Main Street Priority Loan Facility in December 2020. Subsequent amendments to the loan terms were made in October 2023 and January 2024, reflecting the company's restructuring plan. As of the end of 2023, the outstanding loan balance stood at $51.3 million.
Rajiv De Silva, CEO of Venus Concept, expressed gratitude to City National Bank of Florida for their support and emphasized the importance of the new financing in the company's turnaround efforts. Avinash Amin, MD, Managing Partner at Madryn, also remarked on the ongoing partnership and commitment to Venus Concept's path to profitability.
The company's forward-looking statements caution that these plans are subject to risks and uncertainties that could affect their business operations and financial performance. These statements are not guarantees of future performance and are based on information currently available.
Venus Concept, with a presence in over 60 countries, offers a wide range of medical aesthetic and hair restoration technologies. The company has received backing from several healthcare industry growth equity investors, including EW Healthcare Partners and HealthQuest Capital.
InvestingPro Insights
In the wake of Venus Concept Inc.'s recent financial restructuring, real-time data from InvestingPro provides a clearer picture of the company's financial health. According to InvestingPro, Venus Concept operates with a significant debt burden and is quickly burning through cash. These insights could be crucial for investors monitoring the company's turnaround efforts and the effectiveness of the new financing agreement.
InvestingPro Data shows a market capitalization of just $4.58 million, which is notably small for a company with a global presence. Additionally, the company's revenue has declined by 23.26% over the last twelve months as of Q4 2023, and its gross profit margin stands at 68.32%. The price of Venus Concept's stock has fallen significantly over the last year, with a 73.15% drop in the one-year price total return as of the current date in 2024. These metrics underscore the challenges Venus Concept faces as it works toward financial stability.
InvestingPro Tips further reveal that analysts do not expect the company to be profitable this year, and the valuation implies a poor free cash flow yield. However, it's worth noting that the company's liquid assets exceed its short-term obligations, providing some cushion in the immediate term.
For those looking to delve deeper into the financial nuances of Venus Concept, InvestingPro offers additional tips and metrics. Currently, there are 9 more InvestingPro Tips available for Venus Concept, which can be accessed at: https://www.investing.com/pro/VERO. Investors can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing a comprehensive toolset for informed investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.