Venus Concept Announces $22.25 Million Equity Financing
Venus Concept Inc. (“Venus Concept” or the “Company”) (NASDAQ: VERO), a global medical aesthetic technology leader, today announced that it entered into a definitive agreement for the sale of shares of its common stock, Series A convertible preferred stock and warrants to purchase common stock in a private placement to a group of investors, including EW Healthcare Partners, HealthQuest Capital and SEDCO Capital. The private placement is expected to result in gross proceeds to the Company of approximately $22.25 million, before deducting placement agent fees and other offering expenses.
Pursuant to the terms of the securities purchase agreement, the Company will issue 2,300,000 shares of common stock, 660,000 shares of Series A convertible preferred stock, which are convertible into 6,600,000 shares of common stock, and warrants to purchase 6,675,000 shares of common stock. The Series A preferred stock will automatically convert into common stock upon receipt of stockholder approval. The Series A preferred stock has no voting rights. The closing of the private placement is subject to certain conditions and is expected to occur on or before March 20, 2020. Proceeds from the private placement will be used for general corporate purposes.
Stifel is acting as lead placement agent for the private placement. BTIG is acting as co-placement agent for the private placement.