Venus Concept (VERO) Stock Explodes Over 300% As Majority Owner Takes Control

TLDR

• Madryn Asset Management increased its stake in Venus Concept to 91%, now holding 18,763,125 shares split between two entities
• The majority shareholder has expressed interest to the board in reducing operational expenses and considering potential delisting of common stock
• VERO stock jumped 311.89% on Friday with over 90 million shares traded versus usual 141,000 daily average
• Venus Concept’s financial health shows troubling signs with -92.76% net margin and revenue declining 32.5% over three years
• The company’s Altman Z-Score of -9.83 places it in distress zone with high bankruptcy risk

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Venus Concept stock exploded higher on Friday after revealing its majority shareholder now controls an overwhelming portion of the company. The medical technology firm filed paperwork with the SEC showing Madryn Asset Management has boosted its ownership to 91%.

Venus Concept Inc., VERO

VERO shares rocketed 311.89% during trading. Volume spiked dramatically as more than 90 million shares changed hands compared to the typical daily average of 141,000.

Major Shareholder Tightens Grip

Madryn Asset Management now owns 18,763,125 shares of VERO. The ownership breaks down into two parts. Madryn Health Partners holds 6,942,600 shares representing 33.7% of the company. Madryn Health Partners (Cayman Master) controls 11,820,525 shares for a 57.3% stake.

The investment firm has been financially backing Venus Concept through its transformation period. Madryn holds senior notes that can convert into Series K preferred shares. The two parties last announced one of these conversions in late 2025.

According to regulatory filings, Madryn has talked with the board about cutting operational expenses. These discussions touched on the possibility of delisting and deregistering the common stock. The moves would aim to streamline operations and improve financial efficiency.

Venus Concept develops and sells medical aesthetic technologies. Their product lineup includes systems for hair restoration and minimally invasive procedures. The United States generates most of the company’s revenue.

Financial Picture Looks Grim

The numbers paint a tough picture for Venus Concept. Revenue for the trailing twelve months hit $58.88 million. But three-year revenue growth sits at negative 32.5%.

Operating margin comes in at negative 59%. Net margin reaches negative 92.76%. These figures show the company burns through cash on its operations.

The balance sheet reveals a debt-to-equity ratio of 12.22. This points to heavy borrowing relative to shareholder equity. The Altman Z-Score of negative 9.83 puts Venus Concept deep in the distress zone.

Valuation metrics reflect the struggles. The price-to-sales ratio sits at 0.02 near historical lows. Price-to-book ratio stands at 0.99 close to book value. The RSI-14 reading of 35.9 suggests the stock approaches oversold levels.

Insiders own 60.33% of shares while institutions hold just 7.49%. The stock carries high volatility with a reading of 30.91.

VERO shares dropped 0.69% on Thursday before Friday’s massive rally. Year-to-date the stock has fallen 3.38%. Over the past 12 months shares have declined 64.15%. Market capitalization sits around $2.66 million.

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