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TORONTO - Venus Concept Inc. (NASDAQ: VERO), a global leader in medical aesthetic technology, has entered into agreements for a registered direct offering of common stock, aiming to raise approximately $1.5 million. The transaction involves the sale of 386,700 shares at $4.06 each, with the closing expected on or around April 14, 2025, pending customary conditions. According to InvestingPro data, the company faces significant cash burn challenges, with negative free cash flow of $11.19 million in the last twelve months.
The exclusive placement agent for this offering is H.C. Wainwright & Co. The net proceeds from the sale, after deducting agent fees and other expenses, are intended for general corporate purposes. This stock offering is pursuant to a shelf registration statement that was declared effective by the Securities and Exchange Commission (SEC) on November 1, 2024.
Venus Concept's diverse product portfolio includes a range of minimally invasive and non-invasive medical aesthetic and hair restoration technologies. The company has a presence in over 60 countries and direct markets in 12, featuring devices such as Venus Versa, Venus Legacy, and the ARTAS iX® Robotic Hair Restoration system. Despite its global presence, the company's revenue declined by 15% in the last twelve months to $64.8 million, with a gross profit margin of 68.3%.
The offering of shares is made through a prospectus, including a prospectus supplement forming part of the effective registration statement. Interested parties can obtain the final prospectus supplement and accompanying prospectus, when available, from the SEC's website or directly from H.C. Wainwright & Co.
This news is based on a press release statement and does not constitute an offer to sell or a solicitation of an offer to buy the securities in any jurisdiction where such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction.
In other recent news, Venus Concept Inc. reported a decrease in revenue for the fourth quarter of 2024, with total revenue falling to $15.8 million, missing the anticipated $17 million. This shortfall was primarily due to a significant 58% year-over-year decrease in lease revenue. Despite the revenue decline, Venus Concept managed to improve its gross margin to 69.1% from 66.5% in the previous year and reduced its net loss from $11.1 million to $8 million. In efforts to optimize its financial structure, the company converted $11.0 million of its subordinated convertible notes into preferred stock, reducing its total debt by 54% to approximately $35.5 million.
Additionally, Venus Concept secured an extra $2 million in funding through its Bridge Financing agreement with Madryn Health Partners, bringing the total drawdowns to over $23 million. The funds are intended for general working capital purposes. The company also announced a $1.1 million stock sale through a direct offering, with H.C. Wainwright & Co. acting as the exclusive placement agent. BTIG analysts maintained a Neutral rating on Venus Concept, citing ongoing challenges in the customer environment despite the company's strategic focus on cash sales.
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