Venus Concept announces the refinancing of its debt
New loan and debt swap agreements dramatically improve the balance sheet and financial position by reducing the overall cost of borrowing, reducing annual interest charges and improving future cash flow
TORONTO, Dec. 10 2020 (GLOBE NEWSWIRE) – Venus Concept Inc. (“Venus Concept” or the “Company”) (NASDAQ: VERO), a global leader in medical aesthetic technology, today announced that it has changed its ease of use. credit with the City National Bank of Florida (“CNB”) and has successfully refinanced its long-term debt obligations. Specifically, the Company secured a new loan from CNB totaling $ 50.0 million under the Main Street Senior Lending Facility established by the Board of Governors of the Federal Reserve System, article 13 (3) of the Federal Reserve Act. The loan has a term of five years and bears interest at the annual LIBOR rate plus 3%. A portion of the proceeds was used to repay $ 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”), under which the Company repaid $ 42.5 million of the total capital. owed under the existing credit agreement with Madryn and issued subordinated convertible notes guaranteed at 8% to Madryn for a total principal amount of $ 26.7 million to exchange and repay the remaining debts owed to Madryn which would have arrived maturing in 2022. The convertible notes have a term of 5 years and the interest rate on the convertible notes decreases to 6% on the third anniversary of the issue. The Notes are convertible at any time into common shares of the Company at an initial conversion price of $ 3.25 per share, subject to adjustment.
“We are pleased to announce these significant improvements to Venus Concept’s balance sheet and financial position, reducing our cost of debt from 9% to less than 5% based on current rates,” said Domenic Della Penna, Director Financial Venus Concept. “This new loan agreement allows us to refinance our long-term debt obligations, which gives us greater flexibility to support the execution of our growth strategy. “
Additional information regarding these loan and securities agreements can be found 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 leader in aesthetic medical technology with a broad portfolio of minimally invasive and non-invasive aesthetic medical and hair restoration technology products and present 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 its well-established direct global markets. Venus Concept’s product portfolio includes 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 hair restoration systems include NeoGraft®, an automated hair restoration system that facilitates the harvesting of follicles during an FUE process and ARTAS® and ARTAS iX® Robotic hair restoration systems, which harvest follicular units directly from the scalp and create recipient implantation sites using proprietary algorithms. Venus Concept has been backed by leading healthcare growth equity investors including EW Healthcare Partners (formerly Essex Woodlands), HealthQuest Capital, Longitude Capital Management and Aperture Venture Partners.
Caution 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 on the Financial situation of the company, and other statements containing the words “expect”, “intend”, “may”, “may” 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 regarding the activities of the Company and the industry in which it operates, as well as on the beliefs and assumptions of management and do not constitute guarantees of performance or future developments and involve risks, uncertainties and other known and unknown factors which are in some cases beyond the control of the Company. Factors that could materially affect the business operations and the financial performance and condition of the Company include, but are not limited to, the risks and uncertainties described in Part I Article 1A– “Risk Factors ”in the most recent annual report of the Company on Form 10-K, Part II, Item 1A -“ Risk Factors ”in the most recent Form 10-Q and in other documents the Company may file with the SEC. You are urged to carefully consider these factors when evaluating forward-looking statements and are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements are based on information available to the Company on the date below. Except as required by law, the Company does not intend to publicly update or revise forward-looking statements to reflect new information or future events or otherwise.
CONTACT: Investor Relations Contact: Westwicke Partners on behalf of Venus Concept: Mike Piccinino, CFA [email protected]