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Venus Concept Inc. (NASDAQ:VERO), a medical device company specializing in aesthetic technology with annual revenues of $61 million and a market capitalization of $2.39 million, has entered into an additional financing agreement with its lenders, Madryn Health Partners, LP and Madryn Health Partners (Cayman Master), LP, according to a recent SEC 8-K filing. The company secured a ninth delayed drawdown of $2 million under its existing Loan and Security Agreement, which was initially disclosed on April 23, 2024.
The drawdown, which took place on May 23, 2025, is part of a bridge financing arrangement that provides Venus Concept with term loans totaling up to $23,237,906.85. The latest infusion of capital is expected to be used for general working capital purposes after transaction expenses are covered. According to InvestingPro data, the company’s current ratio stands at 1.28, while its Financial Health Score is rated as WEAK, suggesting ongoing liquidity management challenges.
Under the terms of the Loan and Security Agreement, the financing bears an annual interest rate of 12%. The Loan Parties, which include Venus Concept USA, Inc., Venus Concept Canada Corp., and Venus Concept Ltd., have pledged a priority security interest in all real and personal property collateral to secure the obligations to the lenders.
The Loan and Security Agreement has facilitated multiple drawdowns since its inception, with the first occurring on April 23, 2024, and subsequent drawdowns taking place throughout 2024 and into 2025. The company’s financial obligations include the repayment of all unpaid principal and accrued interest by the maturity date.
Venus Concept’s decision to secure additional funding through the Loan and Security Agreement reflects its ongoing efforts to manage working capital and invest in its business operations, particularly given its revenue decline of 16.79% in the last twelve months. The SEC filing provides investors with insight into the company’s financial strategy and its relationship with its lenders. For deeper insights into Venus Concept’s financial health and growth prospects, InvestingPro subscribers can access comprehensive analysis and over 30 additional financial metrics.
This financial move comes as the medical technology industry continues to evolve, with companies like Venus Concept seeking to innovate and expand their market presence. Based on InvestingPro’s Fair Value analysis, the stock currently appears undervalued, though investors should consider the company’s financial health metrics when making investment decisions. The information disclosed in this article is based on the SEC filing by Venus Concept Inc.
In other recent news, Venus Concept reported a challenging first quarter of 2025 with a 22% decline in revenue, totaling $13.6 million, and a net loss of $12.4 million. The company did not provide full-year guidance but anticipates sequential revenue growth in the next quarter. Venus Concept plans to launch a new body contouring device in the second half of 2025, aiming to bolster its product lineup despite current market difficulties. The company has been focusing on cash system sales and cost containment strategies, reducing operating expenses by 6% to $18.3 million. Analysts from Maxim Group noted the impact of economic uncertainty and tighter lending practices on the company’s performance. Venus Concept’s gross margin decreased to 64.2% from 66.6% the previous year. The company also reported a decrease in gross profit by 25% to $8.8 million. Despite these challenges, Venus Concept remains committed to strategic initiatives and enhancing its financial profile with support from key investors.
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