Venus Concept Inc. Announces Review of Strategic Alternatives
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Insights
The evaluation of strategic alternatives by Venus Concept Inc. indicates a significant juncture for the company and its shareholders. Such processes often aim to unlock value and can lead to a variety of outcomes, including mergers, acquisitions, or divestitures. A financial analyst would scrutinize the company's balance sheet, cash flow and revenue streams to assess its intrinsic value and the potential worth of its assets in the event of a sale or merger. The retention of Canaccord Genuity LLC suggests a proactive approach to this evaluation, signaling to investors that the company is serious about exploring all avenues for value creation. This could have a positive effect on the stock price as the market often reacts favorably to announcements of potential value-maximizing initiatives.
From a market research perspective, understanding the competitive landscape within the medical aesthetic technology sector is crucial. The demand for aesthetic procedures is growing and companies like Venus Concept must innovate and strategically position themselves to capture market share. Analysts would evaluate industry trends, potential growth areas and the company's market position to forecast how different strategic alternatives might impact its competitive edge. If the company opts for a merger or acquisition, it could significantly alter its market dynamics, possibly resulting in increased market share or entry into new markets. Conversely, divestiture of non-core assets could streamline operations and focus on more profitable segments.
Engaging in strategic alternatives requires meticulous legal oversight. A legal expert would emphasize the importance of regulatory compliance and thorough due diligence in any potential transaction. The legal ramifications of mergers, acquisitions, or asset sales are complex and can have far-reaching implications for the company's future operations. The expert would also note the cautionary statement regarding the uncertainty of any transaction, which is a standard disclaimer to manage shareholder expectations and mitigate legal risk. This statement also serves to temper market speculation, maintaining a level of stability in the company's stock during the evaluation period.
TORONTO, Jan. 24, 2024 (GLOBE NEWSWIRE) -- Venus Concept Inc. (“Venus Concept” or the “Company”) (NASDAQ: VERO), a global medical aesthetic technology leader, announced today that its Board of Directors (the “Board”) is evaluating potential strategic alternatives to maximize shareholder value. As part of the process, the Board is considering a full range of strategic alternatives, which may include one or more financings, mergers, reverse mergers, other business combinations, sales of assets, licensings or other transactions.
The Company has retained Canaccord Genuity LLC as its financial advisor to assist in evaluating potential strategic alternatives. There can be no assurance that the evaluation of strategic alternatives will result in any transaction, nor can there be any assurance regarding any transaction’s timing or ultimate outcome.
Venus Concept has not set a timetable for completion of the process and does not intend to disclose developments related to the process unless and until the Company executes a definitive agreement with respect thereto, or the Board otherwise determines that further disclosure is appropriate or required.
Cautionary Statement Regarding Forward-Looking Statements
This communication contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Any statements contained herein that are not of historical facts may be deemed to be forward-looking statements. In some cases, you can identify these statements by words such as such as “anticipates,” “believes,” “plans,” “expects,” “projects,” “future,” “intends,” “may,” “should,” “could,” “estimates,” “predicts,” “potential,” and other similar expressions that are predictions of or indicate future events and future trends. These forward-looking statements include, but are not limited to, statements about the Company's plans to evaluate strategic alternatives, the nature of possible strategic alternatives, the outcome and timing of any strategic alternative and disclosure of updates regarding strategic alternatives. These forward-looking statements are based on current expectations, estimates, and projections about our business, future plans and strategies and the industry in which the Company operates and management's beliefs and assumptions and are not guarantees of future performance or developments and involve known and unknown risks, uncertainties, and other factors that are in some cases beyond our control. As a result, any or all of our forward-looking statements in this communication may turn out to be inaccurate. Factors that could materially affect our business operations and financial performance and condition include, but are not limited to, those risks and uncertainties described under Part II Item 1A—“Risk Factors” in our Quarterly Reports on Form 10-Q and Part I Item 1A—“Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022. You are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on the forward-looking statements. The forward-looking statements are based on information available to us as of the date of this communication. Unless required by law, the Company does not intend to publicly update or revise any forward-looking statements to reflect new information or future events or otherwise.
About Venus Concept
Venus Concept is an innovative global medical aesthetic technology leader with a broad product portfolio of minimally invasive and non-invasive medical aesthetic and hair restoration technologies and reach in over 60 countries and 12 direct markets. Venus Concept’s product portfolio consists of aesthetic device platforms, including Venus Versa, Venus Legacy, Venus Velocity, Venus Fiore, Venus Viva, Venus Glow, Venus Bliss, Venus BlissMAX, Venus Epileve, Venus Viva MD and AI.ME. Venus Concept’s hair restoration systems include NeoGraft® and the ARTAS iX® Robotic Hair Restoration system. Venus Concept has been backed by leading healthcare industry growth equity investors including EW Healthcare Partners (formerly Essex Woodlands), HealthQuest Capital, Longitude Capital Management, Aperture Venture Partners, and Masters Special Situations.
FAQ
What is Venus Concept Inc. (VERO) evaluating?
What are the potential strategic alternatives being considered by Venus Concept Inc. (VERO)?
Who has Venus Concept Inc. (VERO) retained as its financial advisor for evaluating potential strategic alternatives?
Is there a guarantee that the evaluation of strategic alternatives will result in any transaction?
Has Venus Concept Inc. (VERO) set a timetable for completion of the process?
What will Venus Concept Inc. (VERO) disclose related to the process of evaluating strategic alternatives?
