Venus Concept Announces Loan Purchase and Completion of First Phase of Refinancing
24 April 2024 - 10:05PM
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
VenusConceptIR@westwicke.com
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