Venus Concept Announces Loan Purchase and Completion of First Phase of Refinancing

MSLP Loan Purchase and Short-term Bridge Financing of Up To $5.0 million By Madryn Asset Management

TORONTO, April 24, 2024 (GLOBE NEWSWIRE) -- 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.”