In its filing, Venus Concept revealed that Madryn Asset Management had acquired a 91% stake in the company, purchasing 18.8 million shares of the company’s common stock.
- The company noted that Madryn met with the company’s board of directors on Tuesday, January 13.
- The firm discussed its desire to reduce the operational costs of Venus Concept.
- This includes a potential delisting of the company and the deregistration of its common stock.
Venus Concept Inc. (VERO) shares are up nearly 300% in Friday’s pre-market trade after the company filed an amended 13D filing with the U.S. Securities and Exchange Commission (SEC).
In its filing, Venus Concept revealed that Madryn Asset Management had acquired a 91% stake in the company, purchasing 18.8 million shares of the company’s common stock.
Retail sentiment on Stocktwits around Venus Concept was in the ‘extremely bullish’ territory at the time of writing.
Why Did Madryn Acquire The Stake?
In the SEC filing, Venus Concept noted that Madryn met with the company’s board of directors on Tuesday, January 13. The firm discussed its desire to reduce the operational costs of Venus Concept. This includes a potential delisting of the company and the deregistration of its common stock.
Madryn is a New York-based private equity firm that invests in innovative and unique healthcare companies. The firm’s portfolio of investments includes Veracyte, Monteris Medical, Somalogic, Veran Medical Technologies, and Intuity Medical, among others.
What Does Venus Concept Do?
Venus Concept is a Toronto, Canada-based company that focuses on “aesthetic intelligence.”
According to the company’s website, Venus Concept’s product portfolio includes minimally invasive and non-invasive medical aesthetic and hair restoration technologies. It has presence in over 60 countries and nine direct markets.
Some of its products include aesthetic device platforms such as Venus Versa, Venus Epileve, NeoGraft, and the ARTAS iX Robotic Hair Restoration system.
How Did Stocktwits Users React?
One bullish user on Stocktwits warned against shorting VERO, stating that short sellers will “pay a price too high to recover from.”
Another user suggested that retail investors “hold tight” and not sell the stock, adding that it seems there could be a buyout or a merger, or that Venus Concept could go private.
VERO stock is down 3% year-to-date and 62% over the past 12 months.
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