Venus Concept Announces Loan Purchase and Completion of First Phase of Refinancing
MSLP Loan Purchase and Short-term Bridge Financing of Up To $5.0 million By Madryn Asset Management
TORONTO, April 24, 2024 (GLOBE NEWSWIRE) -- Venus Concept Inc. (“Venus Concept” or the “Company”) (NASDAQ: VERO), a global medical aesthetic technology leader, today announced that on April 23, 2024, its existing Main Street Lending Program Loan (“MSLP Loan”) was purchased by affiliates of Madryn Asset Management, LP (“Madryn”) for an undisclosed amount from the City National Bank of Florida (“CNB”) with the consent of the Company (the “MSLP Loan Purchase”). Following close of the MSLP Loan Purchase, Venus Concept and Madryn entered into a Loan and Security Agreement (“Madryn Loan Agreement”), dated April 23, 2024, pursuant to which Madryn provides an aggregate principal amount of up to $5.0 million in debt financing to the Company to support near-term liquidity requirements. A principal amount of $2.0 million net of transaction fees was drawn by the Company at the close of the transaction.
On December 8, 2020, Venus entered into a loan in the aggregate amount of $50.0 million for which CNB served as a lender pursuant to the Main Street Priority Loan Facility as established by the Board of Governors of the Federal Reserve System Section 13(3) of the Federal Reserve Act. On October 4, 2023, and again on January 18, 2024, the Company modified certain terms of the MSLP Loan Agreement as a part of an ongoing debt restructuring plan. As of December 31, 2023, the MSLP Loan had an outstanding balance of $51.3 million.
“We want to thank the City National Bank of Florida for their support of the Company through the Main Street Lending Program,” said Rajiv De Silva, Chief Executive Officer of Venus Concept. “As the Company continues implementing its turnaround plans, debt restructuring and financing remain important near-term priorities. Madryn’s purchase of our outstanding senior debt facility and extension of bridge financing provides critical support in this process. We appreciate Madryn’s ongoing support of the Company and look forward to working towards cash flow breakeven and sustainable profitability. We will look to provide an update as soon as possible.”
“Madryn is pleased to support Venus Concept in its continued journey towards restructuring the overall operational and financial profile of the business,” said Avinash Amin, MD, Managing Partner at Madryn Asset Management, LP. “Our purchase of the senior debt from CNB and providing bridge financing to the Company is another step in our continued partnership with Venus Concept as it works towards the goal of returning to growth and sustained profitability as a public company.”
Cautionary Statement Regarding Forward-Looking Statements
This communication contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Any statements contained herein that are not of historical facts may be deemed to be forward-looking statements. In some cases, you can identify these statements by words such as such as “anticipates,” “believes,” “plans,” “expects,” “projects,” “future,” “intends,” “may,” “should,” “could,” “estimates,” “predicts,” “potential,” and other similar expressions that are predictions of or indicate future events and future trends. These forward-looking statements are based on current expectations, estimates, and projections about our business, and the industry in which the Company operates and management's beliefs and assumptions and are not guarantees of future performance or developments and involve known and unknown risks, uncertainties, and other factors that are in some cases beyond our control. As a result, any or all of our forward-looking statements in this communication may turn out to be inaccurate. Factors that could materially affect our business operations and financial performance and condition include, but are not limited to, those risks and uncertainties described under Part II Item 1A-“Risk Factors” in our Quarterly Reports on Form 10-Q and Part I Item 1A-“Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023. You are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on the forward-looking statements. The forward-looking statements are based on information available to us as of the date of this communication. Unless required by law, the Company does not intend to publicly update or revise any forward-looking statements to reflect new information or future events or otherwise.
About Venus Concept
Venus Concept is an innovative global medical aesthetic technology leader with a broad product portfolio of minimally invasive and non-invasive medical aesthetic and hair restoration technologies and reaches over 60 countries and 12 direct markets. Venus Concept's product portfolio consists of aesthetic device platforms, including Venus Versa, Venus Versa PRO, Venus Legacy, Venus Velocity, Venus Viva, Venus Glow, Venus Bliss, Venus Bliss MAX, Venus Epileve, Venus Viva MD and AI.ME. Venus Concept's hair restoration systems include NeoGraft® and the ARTAS iX® Robotic Hair Restoration system. Venus Concept has been backed by leading healthcare industry growth equity investors including EW Healthcare Partners (formerly Essex Woodlands), HealthQuest Capital, Longitude Capital Management, Aperture Venture Partners, and Masters Special Situations.
Investor Relations Contact: ICR Westwicke on behalf of Venus Concept: Mike Piccinino, CFA
