Trump announces trade deal with EU following months of negotiations
Venus Concept Inc. (NASDAQ:VERO), a medical technology company specializing in surgical and medical instruments, has secured an additional $2 million in funding through its ongoing Bridge Financing agreement with Madryn Health Partners, LP and Madryn Health Partners (Cayman Master), LP. This latest drawdown, which is the eighth since the agreement's inception, was completed on Monday. According to InvestingPro data, the company has been quickly burning through cash, with a concerning negative EBITDA of $23.3 million in the last twelve months. For deeper insights into Venus Concept's financial health and 11 additional key ProTips, consider exploring InvestingPro's comprehensive analysis.
The Bridge Financing, initially established on April 23, 2024, has provided Venus Concept with a series of drawdowns totaling $23,237,906.85 to date. The terms of the agreement stipulate a 12% annual interest rate on the borrowed funds, with all principal and accrued interest due on the maturity date. Additionally, the agreement grants the lenders a priority security interest in all real and personal property collateral of the Loan Parties, which includes Venus Concept and its wholly-owned subsidiaries. InvestingPro analysis reveals the company operates with a significant debt burden, with a debt-to-equity ratio of 18.16 and total debt of $43.03 million as of the latest quarter.
The series of drawdowns began with an initial term loan of $2,237,906.85 and has since continued with varying amounts provided at different intervals, the most recent being the $2 million received on April 4, 2025. The company plans to use the funds from this latest drawdown for general working capital purposes after covering transaction expenses.
This financial maneuver comes as part of Venus Concept's strategy to maintain liquidity and support its operational needs. The details of the Bridge Financing and its subsequent amendments have been filed with the Securities and Exchange Commission and can be found in the Current Report on Form 8-K, which includes exhibits detailing the terms and conditions of the agreement.
Investors and interested parties can refer to these documents for a comprehensive understanding of the financial arrangements between Venus Concept and its lenders. The transaction underscores the ongoing relationship with Madryn Health Partners and the continued support in the form of capital to fund Venus Concept's business operations.
In other recent news, Venus Concept Inc. has announced a significant reduction in its debt obligations, cutting its total debt by 54% to approximately $35.5 million. This was achieved through a strategic transaction with Madryn Asset Management, which converted $11 million of subordinated convertible notes into preferred stock. Additionally, Venus Concept reported a decline in its fourth-quarter 2024 revenue to $15.8 million, a 13% year-over-year decrease, mainly due to a significant drop in lease revenue. Despite this, the company improved its gross margin to 69.1% and reduced its net loss to $8 million.
BTIG analysts maintained a Neutral rating on Venus Concept after the revenue shortfall, noting the company's shift towards cash sales and cost reductions. The firm highlighted a challenging customer environment expected to persist into the first half of 2025. Looking ahead, Venus Concept has set a Q1 2025 revenue target of at least $14 million and is exploring strategic alternatives. The company also completed a 1-for-11 reverse stock split and received compliance notice from NASDAQ, reflecting ongoing efforts to stabilize its financial standing.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.