Venus Concept Inc. (NASDAQ:VERO), a global medical technology company, announced on Monday that it has entered into a Loan Amendment and Consent Agreement with its lenders, Madryn Health Partners LP and Madryn Health Partners (Cayman Master) LP. The agreement provides the company with temporary relief from certain financial covenants under its existing loan agreements.
The relief includes a waiver of minimum liquidity requirements through August 2, 2024, and the deletion of specific operating covenants for the June 30, 2024 measurement period. This move is seen as a strategic step to provide Venus Concept with increased financial flexibility in the short term.
In addition, Venus Concept and its subsidiaries, which are collectively referred to as the Loan Parties, have agreed to a Fourth Bridge Loan Amendment with the Lenders. This amendment extends the maturity date of the Bridge Loan from July 8, 2024, to August 2, 2024. The Bridge Loan was originally established under a Loan and Security Agreement dated April 23, 2024.
These amendments come at a critical time for Venus Concept, which operates in the surgical and medical instruments and apparatus industry under the SIC code 3841. The company’s decision to amend its loan agreements reflects its proactive management of its capital structure and commitment to maintaining operational stability.
The full text of the Amendment and Consent Agreement and the Fourth Bridge Loan Amendment has been filed with the Securities and Exchange Commission and is available for review. These documents provide detailed information about the terms and conditions of the amendments.
Venus Concept’s management, led by Chief Financial Officer Domenic Della Penna, has expressed confidence in the company’s strategic direction and the benefits these amendments will bring. The news is based on a press release statement from the company and is intended to inform investors and other stakeholders about the latest financial arrangements of Venus Concept Inc.
In other recent news, Venus Concept, a leading medical aesthetic technology provider, has secured a significant deal with Skin Laundry Holdings, Inc. for the supply of Venus Viva devices to clinics across the United States. The initial order from Skin Laundry includes both the devices and the necessary consumables. This partnership is a testament to Venus Concept’s ability to support aesthetic service providers of all sizes with high-quality devices and customer service.
In addition to this, Venus Concept has made substantial strides in its business operations. The company has secured a Health Canada license for its Venus Versa Pro system, allowing the company to expand into the Canadian market. This expansion is part of Venus Concept’s ongoing efforts to increase its global product offerings.
On the financial front, Venus Concept has strategically converted $35 million of its senior debt into equity with Madryn Asset Management, LP, bringing its debt down to approximately $45.4 million. This move is a significant step towards streamlining the company’s capital structure.
In terms of earnings, Venus Concept reported a 15% year-over-year decline in total revenue, amounting to $17.5 million in Q1 2024. Despite this decline, the company exceeded revenue expectations, driven by a 30% sequential increase in international revenue and a focus on cash system sales. However, Venus Concept reported a net loss of $9.8 million, despite reducing cash used in operations by 51% year-over-year. These are the recent developments regarding Venus Concept.
