Venus Concept completes $1.57M stock offering

Published 14/04/2025, 21:14
Venus Concept completes $1.57M stock offering

TORONTO - Venus Concept Inc. (NASDAQ: VERO), a global leader in medical aesthetic technology, has announced the completion of a registered direct offering, which closed today. The offering included 386,700 shares of common stock sold at $4.06 per share, resulting in gross proceeds of approximately $1.57 million. The company’s stock has shown remarkable momentum, posting a 75.2% return over the past week, according to InvestingPro data.

This recent offering, combined with the previous offering that closed on April 10, 2025, brings the total gross proceeds to approximately $2.7 million, matching the company’s current market capitalization. According to the company, these funds will be allocated for general corporate purposes. InvestingPro analysis indicates the company operates with a significant debt burden, with a debt-to-capital ratio of 93%.

H.C. Wainwright & Co. served as the exclusive placement agent for the offering. The transaction was conducted in accordance with Nasdaq rules, under a shelf registration statement on Form S-3, which the Securities and Exchange Commission (SEC) declared effective on November 1, 2024.

Interested parties can access the final prospectus supplement and accompanying prospectus filed with the SEC, which detail the terms of the offering. However, the securities were offered only by means of the prospectus, and the company has stated that this press release does not constitute an offer to sell or the solicitation of an offer to buy the securities.

Venus Concept’s portfolio includes a range of minimally invasive and non-invasive medical aesthetic and hair restoration technologies. The company’s reach extends to over 60 countries and includes direct markets in 12 regions. Its product line features devices like Venus Versa, Venus Legacy, and the ARTAS iX Robotic Hair Restoration system. Despite its global presence, the company has experienced a 15% year-over-year revenue decline, with current annual revenue at $64.8 million. For deeper insights into Venus Concept’s financial health and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports, which cover over 1,400 US stocks.

The company has a history of backing from prominent healthcare industry growth equity investors, such as EW Healthcare Partners and HealthQuest Capital.

The information reported is based on a press release statement, and the forward-looking statements included therein reflect the company’s expectations as of the date of the release. These statements are subject to various risks and uncertainties that could impact Venus Concept’s business operations and financial performance.

In other recent news, Venus Concept Inc. announced a registered direct offering of common stock aiming to raise approximately $1.5 million, with H.C. Wainwright & Co. serving as the exclusive placement agent. The company also initiated another stock sale to raise $1.1 million, with the funds from both offerings intended for general corporate purposes. Additionally, Venus Concept secured $2 million in funding through its Bridge Financing agreement with Madryn Health Partners, bringing the total drawdowns from this agreement to over $23 million. In a significant financial maneuver, Venus Concept reduced its debt by 54% over the past year by converting $11 million of its subordinated convertible notes into preferred stock. This strategic move is part of the company’s ongoing efforts to optimize its capital structure. Despite these financial adjustments, BTIG analysts maintained a Neutral rating on Venus Concept following a Q4 revenue report that fell short of expectations, primarily due to a decrease in lease revenue. The company reported a quarterly revenue of $15.8 million, which was below the anticipated $17 million, and has set a Q1 2025 revenue target of at least $14 million.

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