TLDR
- Madryn Asset Management raised its Venus Concept ownership to 91%, holding 18,763,125 shares through two investment vehicles
- VERO stock soared 311.89% on Friday with trading volume exploding to 90 million shares from typical 141,000
- Madryn discussed cost reduction strategies with the board including possible delisting and deregistering of common stock
- Venus Concept faces financial distress with -92.76% net margin and three-year revenue decline of 32.5%
- The company’s market cap stands at approximately $2.66 million with shares down 64.15% over past year
Venus Concept shares exploded on Friday following news that its largest investor has taken near-total control of the medical technology company. Madryn Asset Management disclosed in SEC filings that it now owns 91% of VERO.
The stock jumped 311.89% during the session. Trading activity went wild with over 90 million shares changing hands. That’s roughly 640 times the normal daily volume of 141,000 shares.
Madryn Asset Management controls 18,763,125 shares through two entities. Madryn Health Partners owns 6,942,600 shares for a 33.7% stake. Madryn Health Partners (Cayman Master) holds 11,820,525 shares representing 57.3%.
The investment firm has supported Venus Concept during its restructuring phase. Madryn holds senior notes convertible into Series K preferred shares. The parties announced their most recent conversion in late 2025.
Strategic Discussions About Company Future
Regulatory filings show Madryn has engaged the board about reducing operational costs. The talks included exploring whether to delist and deregister the common stock. These potential moves aim to improve financial efficiency and cut expenses.
Venus Concept makes medical aesthetic and hair restoration devices. Products include systems for minimally invasive procedures and non-invasive treatments. Most revenue comes from the United States market.
Troubling Financial Metrics
The company’s financial situation raises red flags. Trailing twelve-month revenue totals $58.88 million. Revenue has shrunk 32.5% over three years.
Operating margin sits at negative 59%. Net margin reaches negative 92.76%. These losses show the business burns significant cash.
Debt-to-equity ratio hits 12.22 indicating heavy leverage. The Altman Z-Score of negative 9.83 signals high bankruptcy risk within two years.
Price-to-sales ratio stands at 0.02 near historical lows. Price-to-book ratio is 0.99 close to book value. The RSI-14 at 35.9 approaches oversold territory.
Recent Stock Performance
Shares fell 0.69% on Thursday before Friday’s massive spike. VERO has dropped 3.38% year-to-date. The stock has tumbled 64.15% over the past 12 months.
Insiders control 60.33% of shares while institutions own just 7.49%. Market capitalization sits around $2.66 million. Stock volatility measures 30.91 indicating wild price swings.
Trading volume on Friday reached over 90 million shares compared to the three-month average of roughly 141,000 daily. Madryn Asset Management’s increased stake to 91% represents a strategic consolidation of ownership in the struggling medical device company.
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