Venus Concept announces $1.1 million stock sale

TORONTO - Venus Concept Inc. (NASDAQ:VERO), a leader in medical aesthetic technology, has entered into definitive agreements for a registered direct offering of common stock, which is expected to close on April 10, 2025, subject to customary closing conditions. The offering includes the sale of 328,573 shares at a price of $3.50 per share, aiming to raise gross proceeds of approximately $1.1 million. According to InvestingPro data, the company's current market capitalization stands at $5.9 million, with the stock currently trading at $8.93, significantly above the offering price.

H.C. Wainwright & Co. is serving as the exclusive placement agent for the transaction. The funds raised are intended for general corporate purposes. This offering is being made in accordance with a shelf registration statement on Form S-3, which was declared effective by the Securities and Exchange Commission on November 1, 2024.

Venus Concept's portfolio spans across minimally invasive and non-invasive medical aesthetic devices, as well as hair restoration technologies. The company's reach extends to over 60 countries, with a direct presence in 12 markets. Its product lineup includes various aesthetic device platforms and hair restoration systems such as NeoGraft® and the ARTAS iX® Robotic Hair Restoration system. InvestingPro analysis shows the company maintains a healthy gross profit margin of 68.3% and a current ratio of 1.6, though revenue declined by 15.1% in the last twelve months to $64.8 million.

The forward-looking statements in the press release, which include expectations about the offering's completion and the intended use of proceeds, are subject to various risks and uncertainties. Potential investors are cautioned that these statements are not guarantees of future performance, and the company's actual results may differ materially. For deeper insights into Venus Concept's financial health and growth prospects, investors can access comprehensive analysis and 12+ exclusive ProTips through InvestingPro's detailed research reports, available for over 1,400 US stocks.

The offering of shares is made solely by means of a prospectus, including a prospectus supplement, forming part of the registration statement. When available, the final prospectus supplement and accompanying prospectus for the offering can be obtained on the SEC's website or directly from H.C. Wainwright & Co.

The information regarding the stock sale is based on a press release statement from Venus Concept.

In other recent news, Venus Concept Inc. reported a decline in revenue for the fourth quarter of 2024, with total revenue falling to $15.8 million, a 13% year-over-year decrease. Despite this, the company managed to improve its gross margin to 69.1% from 66.5% in the previous year and reduced its net loss to $8 million from $11.1 million. The company also announced a significant reduction in its debt, converting $11 million of subordinated convertible notes into Series Y preferred stock, reducing total debt by 54% from $76.7 million to approximately $35.5 million. Additionally, Venus Concept secured $2 million in funding through its Bridge Financing agreement with Madryn Health Partners, marking the eighth drawdown since the agreement's inception.

BTIG analysts maintained a Neutral rating on Venus Concept following the company's Q4 revenue miss, which fell short of the anticipated $17 million. The shortfall was attributed to a 58% year-over-year decrease in lease revenue. Despite this, U.S. cash sales represented 87% of the total system revenue, surpassing the company's target range. The company also announced a 1-for-11 reverse stock split and is exploring strategic alternatives. These developments reflect Venus Concept's ongoing efforts to optimize its capital structure and improve financial health amidst challenging market conditions.

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