Venus Concept Announces Debt Refinancing
10 December 2020 - 10:30PM
Venus Concept Inc. (“Venus Concept” or the “Company”) (NASDAQ:
VERO), a global medical aesthetic technology leader, announced
today that it has amended its existing revolving credit facility
with City National Bank of Florida (“CNB”) and successfully
refinanced its long-term debt obligations. Specifically, the
Company secured a new loan with CNB in the aggregate amount of
$50.0 million as part of the Main Street Priority Loan Facility
established by the Board of Governors of the Federal Reserve System
Section 13(3) of the Federal Reserve Act. The loan has a term of
five years and bears interest at an annual rate of LIBOR plus 3%. A
portion of the proceeds were used to pay down $3.2 million of the
Company’s revolving line of credit with CNB. The Company also
entered into agreements with Madryn Health Partners, LP (Madryn)
and Madryn Health Partners (Cayman Master), LP (collectively,
“Madryn”), whereby the Company repaid $42.5 million of aggregate
principal amount owed under the existing credit agreement with
Madryn and issued 8% secured subordinated convertible notes to
Madryn for an aggregate principal amount of $26.7 million to
exchange and retire the remaining debt obligations owed to Madryn
that would have matured in 2022. The convertible notes
have a 5-year term and the interest rate on the convertible notes
decreases to 6% on the third anniversary of the issuance. The notes
are convertible at any time into shares of common stock of the
Company at an initial conversion price of $3.25 per share, subject
to adjustment.
“We are pleased to announce these significant enhancements to
Venus Concept's balance sheet and financial condition, reducing our
cost of debt from 9% to less than 5% based on current rates,” said
Domenic Della Penna, Chief Financial Officer of Venus Concept.
“This new loan agreement allows us to refinance our long-term debt
obligations which provides us with greater flexibility to support
the execution of our growth strategy.”
Additional information regarding these loan and securities
agreements are available in the Company’s Current Report on Form
8-K filed with the Securities and Exchange Commission on December
10, 2020.
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 reach in over 60 countries and 25
direct markets. Venus Concept focuses its product sales strategy on
a subscription-based business model in North America and in its
well-established direct global markets. Venus Concept’s product
portfolio consists of aesthetic device platforms, including Venus
Versa, Venus Legacy, Venus Velocity, Venus Fiore, Venus Viva, Venus
Freeze Plus, Venus Heal, Venus Glow, Venus Bliss, Venus Epileve and
Venus Viva MD. Venus Concept’s hair restoration systems includes
NeoGraft®, an automated hair restoration system that facilitates
the harvesting of follicles during a FUE process and the ARTAS® and
ARTAS iX® Robotic Hair Restoration systems, which harvest
follicular units directly from the scalp and create recipient
implant sites using proprietary algorithms. Venus Concept has been
backed by leading healthcare industry growth equity investors
including EW Healthcare Partners (formerly Essex Woodlands),
HealthQuest Capital, Longitude Capital Management, and Aperture
Venture Partners.
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 (the “1933 Act”) and Section 21E of the
Securities Exchange Act of 1934, as amended (the “1934 Act”),
including, without limitation, statements about the Company’s
financial condition, and other statements containing the words
“expect,” “intend,” “may,” “will,” and similar expressions,
constitute forward-looking statements within the meaning of The
Private Securities Litigation Reform Act of 1995. These
forward-looking statements are based on current expectations,
estimates, forecasts, and projections about the Company’s business
and the industry in which it 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 the Company’s
control. Factors that could materially affect the Company’s
business operations and financial performance and condition
include, but are not limited to, those risks and uncertainties
described under Part I Item 1A—“Risk Factors” in the Company’s most
recent Annual Report on Form 10-K, Part II
Item 1A—“Risk Factors” in the Company’s most recent Form 10-Q
and in other documents the Company may file with the SEC. 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 the Company as of
the date hereof. 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.
Investor Relations Contact:
Westwicke Partners on behalf of Venus Concept:
Mike Piccinino, CFA
VenusConceptIR@westwicke.com
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