Venus Concept reduces debt by 24% through note exchange

Published 02/10/2025, 21:14
Venus Concept reduces debt by 24% through note exchange

TORONTO - Venus Concept Inc. (NASDAQ:VERO), a medical aesthetic technology company generating annual revenue of $60.11 million, announced Thursday it has exchanged $11.48 million in subordinated convertible notes held by Madryn Asset Management affiliates for 545,335 shares of Series Y preferred stock. According to InvestingPro analysis, the company operates with a significant debt burden and weak financial health metrics.

The transaction, completed on September 30, reduced Venus Concept’s total debt obligations to approximately $30.1 million, representing a 24% decrease from the $39.7 million outstanding at the end of 2024. Despite maintaining a solid gross profit margin of 64.88%, the company’s stock has declined 41.33% year-to-date.

"Madryn’s invaluable partnership has provided us with financial flexibility as we work towards sustained long-term growth, profitability, and the execution of our strategic initiatives," said Rajiv De Silva, Chief Executive Officer of Venus Concept.

Avinash Amin, Managing Partner at Madryn Asset Management, stated, "The debt-to-equity exchange announced today is intended to advance Venus’ journey towards completing its transformation plan."

Venus Concept operates in over 60 countries with a portfolio of aesthetic and hair restoration technologies. The company’s product line includes systems such as Venus Versa, Venus Legacy, and the ARTAS iX Robotic Hair Restoration system.

The debt reduction aims to optimize the company’s capital structure as it navigates what it describes as a challenging market environment, according to the press release statement. InvestingPro subscribers can access 7 additional key insights about Venus Concept’s financial position and detailed analysis in the comprehensive Pro Research Report, available for over 1,400 US stocks.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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