Venus Concept

Canaccord Genuity Acts as Exclusive Financial Advisor to Venus Concept on its Restructuring of Over US$75 million of Debt

Canaccord Genuity is pleased to announce that on October 5, 2023, its client Venus Concept Inc. ("Venus" or the "Company") (NASDAQ:VERO) announced that it had finalized an agreement with its lenders, City National Bank of Florida (“CNB”) and Madryn Asset Management, LP and affiliates (“Madryn”), to restructure its existing debt obligations, improving the Company's overall financial position by deferring certain principal and interest payments under its senior debt and exchanging a portion of its convertible notes for preferred stock. The CNB facility was administered under the Main Street Priority Lending Program ("MSLP Note”) announced by the Board of Governors of the U.S. Federal Reserve in May 2020.

The restructuring provides the Company with over $20 million of incremental liquidity over the next two years, with cash savings from (i) the deferral of more than $10 million of amortization under the $50 million MSLP Note until loan maturity on December 8, 2025, (ii) the exchange of $5 million of the Company’s $27 million Secured Subordinated Convertible Notes with Madryn (the “Madryn Notes”) for newly-created Series X Senior Convertible Preferred Stock, and (iii) the remaining outstanding Madryn Notes to pay interest in kind.

Additionally, as part of the restructuring, the Company will utilize a portion of its $9 million multi-tranche private placement stock purchase agreement, with certain investors, further bolstering the Company’s liquidity position.

The debt restructuring supports the Company’s strategic turnaround efforts, by strengthening its capital structure, improving its liquidity position, and enhancing the path to cashflow breakeven in the second half of 2024.

Venus, based in Canada, 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 spanning over 60 countries and 14 direct markets. Venus Concept’s product portfolio consists of aesthetic device platforms, including Venus Versa, Venus Legacy, Venus Velocity, Venus Fiore, Venus Viva, Venus Glow, Venus Bliss, Venus BlissMAX, Venus Epileve, Venus Viva MD and AI.ME. Venus Concept’s hair restoration systems include NeoGraft® and the ARTAS iX® Robotic Hair Restoration system.

Canaccord Genuity acted as exclusive financial advisor on the debt restructuring.

This transaction highlights Canaccord Genuity’s global franchise capabilities in navigating complex, multi-party, cross-border restructurings, healthcare and capital raising expertise.