Venus Concept secures $1.15 million in direct offering

TORONTO - Venus Concept Inc. (NASDAQ: VERO), a leader in medical aesthetic technology with a current market capitalization of just $3.97 million, has announced definitive agreements for a registered direct offering and a concurrent private placement expected to close on June 9, 2025. The company is set to sell 434,720 shares of common stock at $2.65 per share, with potential additional proceeds if short-term warrants are fully exercised. According to InvestingPro data, the company’s stock has declined nearly 63% over the past year, reflecting significant operational challenges.

The offering includes unregistered short-term warrants to purchase up to 869,440 shares, exercisable immediately upon issuance at the same price per share, and expiring eighteen months from the registration statement’s effective date. H.C. Wainwright & Co. is the exclusive placement agent for this transaction.

The gross proceeds from the direct offering are anticipated to be around $1.15 million before deducting fees and other expenses. The fully exercised warrants could yield an additional $2.3 million, although there is no guarantee they will be exercised. Venus Concept plans to allocate the net proceeds for general corporate purposes. With revenue declining by 16.79% and a weak Financial Health Score of 1.65 out of 5 according to InvestingPro’s comprehensive analysis, this capital raise appears crucial for the company’s operations.

The common stock is being offered under a shelf registration statement declared effective by the SEC on November 1, 2024. The offering is made through a prospectus and a prospectus supplement filed with the SEC. The unregistered short-term warrants and the shares underlying them are offered in a private placement and are not registered under the Securities Act or state laws, thus are subject to certain restrictions.

Venus Concept operates in over 60 countries and has a diverse portfolio of medical aesthetic and hair restoration technologies. Despite maintaining a healthy gross profit margin of 67.9%, the company’s financial and operational future includes forward-looking statements that involve risks and uncertainties, and actual results may differ materially from those projected. For deeper insights into Venus Concept’s financial health and future prospects, investors can access the detailed Pro Research Report available on InvestingPro, which covers over 1,400 US equities with expert analysis and actionable intelligence.

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 any securities.

In other recent news, Venus Concept Inc. has agreed to sell its Venus Hair division to Meta Healthcare Group for $20 million in cash. This transaction, which includes the ARTAS and NeoGraft hair restoration technologies, is expected to close in the third quarter of 2025, subject to certain conditions. The sale is part of Venus Concept’s strategy to focus on its core medical aesthetics business and improve its balance sheet. Additionally, Venus Concept completed a registered direct offering, raising approximately $1.57 million from the sale of 386,700 shares at $4.06 per share. This offering, combined with a previous one, totals about $2.7 million in gross proceeds intended for general corporate purposes.

Venus Concept has also entered into agreements for another direct offering of common stock, aiming to raise approximately $1.5 million. In a separate development, the company secured an additional $2 million in funding through its Bridge Financing agreement with Madryn Health Partners. This funding is part of a series of drawdowns totaling over $23 million to date. These financial activities highlight Venus Concept’s efforts to maintain liquidity and support its operational needs.

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