TLDR
- Venus Concept revealed Madryn Asset Management now controls 91% of the company with 18,763,125 shares split between two funds
- Stock price exploded 311.89% on Friday as trading volume hit 90 million shares versus normal 141,000 daily average
- Madryn told the board it wants to cut operational costs and is considering delisting the common stock
- Financial troubles mount with -92.76% net margin, -32.5% three-year revenue growth, and negative 9.83 Altman Z-Score
- VERO trades at $2.66 million market cap after dropping 64.15% over the last year
Venus Concept stock skyrocketed on Friday after the medical device maker revealed its top investor now owns virtually the entire company. SEC documents show Madryn Asset Management controls 91% of VERO shares.
The stock closed up 311.89% for the session. Volume surged dramatically with 90 million shares traded compared to the usual 141,000 per day.
Madryn Asset Management’s position totals 18,763,125 shares. The ownership splits between Madryn Health Partners with 6,942,600 shares at 33.7% and Madryn Health Partners (Cayman Master) with 11,820,525 shares at 57.3%.
The firm has backed Venus Concept financially through its turnaround efforts. Madryn owns senior notes that convert to Series K preferred shares. They last converted notes in late 2025.
Board Talks Focus on Cost Cutting
Filings reveal Madryn discussed expense reduction with company leadership. The conversations covered potentially delisting and deregistering the common stock. Such moves would streamline operations and lower costs.
Venus Concept sells medical aesthetic equipment and hair restoration technology. The company focuses on minimally invasive and non-invasive procedures. U.S. sales drive most revenue.
Financial Health Deteriorates
The numbers tell a rough story. Revenue for the trailing twelve months stands at $58.88 million. But revenue has contracted 32.5% over three years.
Operating margin comes in at negative 59%. Net margin hits negative 92.76%. The company loses money on every dollar of sales.
Debt-to-equity ratio reaches 12.22 showing heavy borrowing. The Altman Z-Score of negative 9.83 puts Venus Concept deep in financial distress territory. This score suggests elevated bankruptcy risk.
Valuation and Trading Patterns
Price-to-sales ratio sits at 0.02 near all-time lows. Price-to-book ratio stands at 0.99 close to book value. RSI-14 reads 35.9 nearing oversold levels.
Insider ownership totals 60.33% while institutional investors hold 7.49%. Stock volatility measures 30.91 indicating sharp price movements.
Shares dropped 0.69% Thursday before Friday’s rally. Year-to-date VERO has fallen 3.38%. Over 12 months the stock has declined 64.15%.
Market capitalization hovers around $2.66 million. Friday’s trading volume of 90 million shares represents a massive spike from typical activity. The three-month daily average sits at roughly 141,000 shares.
Madryn Health Partners and Madryn Health Partners (Cayman Master) together form Madryn Asset Management’s holdings. The investment firm has expressed its intention to work with the board on operational efficiency measures. These discussions included exploring whether delisting makes sense for reducing overhead costs.
