TORONTO - Venus Concept Inc. (NASDAQ: NASDAQ:VERO), a prominent player in the global medical aesthetic technology market, has announced the expansion of its flagship product, the Venus Bliss MAX, into the Canadian market following the issuance of a medical device license by Health Canada.
The Venus Bliss MAX, which combines three proprietary technologies, was initially launched in the United States in early 2022 and has since been made available in various approved jurisdictions worldwide. This 3-in-1 body shaping solution integrates a diode laser for fat reduction, a (MP)2 applicator that merges Multi-Polar Radio Frequency with Pulsed Electro Magnetic Fields for cellulite reduction and skin treatments, and the FlexMax EMS applicators for muscle toning and conditioning.
Dr. Hemanth Varghese, President and COO of Venus Concept, expressed confidence in the system's ability to provide Canadian aesthetic practices with a comprehensive solution for delivering advanced non-invasive body treatments. The company aims to cater to the evolving needs of the aesthetic marketplace and sees this expansion as an opportunity to enhance the service offerings of clinicians and practices across Canada.
Venus Concept's portfolio includes a variety of aesthetic device platforms and hair restoration systems, with a presence in over 60 countries and direct markets in 12 regions. The company's growth has been supported by investments from several leading healthcare industry growth equity investors.
Venus Concept 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. Venus Concept also secured a Health Canada license for its Venus Versa Pro system, allowing the company to expand into the Canadian market.
The company 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.
Additionally, Venus Concept entered into a Loan Amendment and Consent Agreement with its lenders, Madryn Health Partners LP and Madryn Health Partners (Cayman Master) LP, providing the company with temporary relief from certain financial covenants under its existing loan agreements.
InvestingPro Insights
As Venus Concept Inc. (NASDAQ: VERO) expands its presence in the Canadian market with the Venus Bliss MAX, it's crucial for investors to understand the financial health and market performance of the company. According to real-time data from InvestingPro, Venus Concept is operating with a market capitalization of $4.64 million USD. The company has been navigating a challenging financial landscape, with a negative price-to-earnings (P/E) ratio of -0.13 over the last twelve months as of Q1 2024, which indicates that the company is not currently generating profits relative to its share price.
The company's revenue has seen a downturn, with a decline of 21.7% over the last twelve months as of Q1 2024. This is further reflected in the quarterly revenue growth, which contracted by 14.87% in Q1 2024. Despite these financial metrics, Venus Concept has managed a significant return over the last week, with a 15.11% price total return, which could indicate investor optimism in the short term.
InvestingPro Tips for Venus Concept highlight several critical aspects for potential investors to consider. Firstly, the company is quickly burning through cash, which could impact its ability to sustain operations without additional financing. Secondly, analysts do not anticipate the company will be profitable this year, which aligns with the negative P/E ratio observed. It is essential to note that Venus Concept does not pay a dividend to shareholders, which might be a consideration for income-focused investors.
For those interested in a deeper analysis, InvestingPro offers additional tips on Venus Concept, including insights on valuation, cash flow yield, and stock performance over various timeframes. To explore these further, visit https://www.investing.com/pro/VERO and consider using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. There are 10 additional InvestingPro Tips available that could provide a more comprehensive understanding of the company's financial and market position.
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