From Yahoo Finance: 2025-06-06 14:53:00

Venus Concept Inc. (NASDAQ:VERO) is trading higher after announcing the purchase and sale of 434,720 shares at $2.65 per share in a registered direct offering. The company expects gross proceeds of $1.15 million, with potential additional proceeds of $2.3 million from unregistered short-term warrants. The offering is set to close around June 9.

Venus Concept is divesting its hair restoration business in a $20 million cash deal to strengthen its core medical aesthetics segment. The company has entered into a definitive agreement with Meta Healthcare Group to sell its Venus Hair division, including ARTAS and NeoGraft technologies. CEO Rajiv De Silva sees this move as a step towards unlocking shareholder value.

Meta Healthcare Group will acquire Meta Robotics LLC, Venus Concept’s subsidiary, and gain rights to produce NeoGraft systems. In return, Venus Concept receives a global license for certain patents. The deal aims to improve financial stability and focus on high-growth areas, with the raised capital expected to reduce costs and enhance focus on the primary aesthetic device business.

In fiscal year 2024, the Venus Hair business generated $12.5 million in revenue but incurred operational cash usage of $6.7 million. VERO shares surged 35.1% to $3.230 on Friday. This strategic move and capital infusion are expected to position Venus Concept for future growth and success in the aesthetic device market.

Read more: Venus Concept Stock Is Soaring On Friday