8-K
Venus Concept Inc. (VERO)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 30, 2025
VENUS CONCEPT INC.
(Exact name of registrant as specified in its charter)
| Delaware | 001-38238 | 06-1681204 |
|---|---|---|
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification Number) |
235 Yorkland Blvd, Suite 900
Toronto, Ontario M2J 4Y8
(Address of principal executive offices, including Zip Code)
Registrant’s telephone number, including area code: (877) 848-8430
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| --- | --- |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading<br><br> <br>Symbol(s) | Name of each exchange<br><br> <br>on which registered |
|---|---|---|
| Common Stock, $0.001 par value per share | VERO | The Nasdaq Capital Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 1.01. | Entry into a Material Definitive Agreement. |
|---|
MSLP Consent Agreement
On April 30, 2025, Venus Concept Inc. (the “Company”), Venus Concept USA, Inc., a wholly-owned subsidiary of the Company (“Venus USA” or “Borrower”), Venus Concept Canada Corp., a wholly-owned Canadian subsidiary of the Company (“Venus Canada”), and Venus Concept Ltd., a wholly-owned Israeli subsidiary of the Company (“Venus Israel” and together with the Company, Venus USA and Venus Canada, the “Loan Parties”), entered into an Consent Agreement with Madryn Health Partners, LP (“Madryn”) and Madryn Health Partners (Cayman Master), LP (“Madryn Cayman,” and together with Madryn, the “Lenders” or the “Holders”) (the “Consent Agreement”).
The Consent Agreement granted relief under the Loan and Security Agreement (Main Street Priority Loan), dated December 8, 2020, among the Lenders, as lenders, and Venus USA, as borrower (the “MSLP Loan Agreement”), such that (i) certain minimum liquidity requirements under the MSLP Loan Agreement are waived through May 31, 2025, and (ii) permit Venus USA to apply the May 8, 2025 cash interest payment due under each Note (as defined in the Consent Agreement) to the respective outstanding principal balance of each Note.
The foregoing description of the Consent Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Consent Agreement, a copy of which is filed hereto as Exhibit 10.1.
Fourteenth Bridge Loan Amendment
On April 30, 2025, the Loan Parties entered into a Fourteenth Bridge Loan Amendment Agreement with the Lenders (the “Fourteenth Bridge Loan Amendment”). The Fourteenth Bridge Loan Amendment amended that certain Loan and Security Agreement, dated April 23, 2024, among Venus USA, as borrower, the Company, Venus Canada and Venus Israel, as guarantors, and the Lenders, as lenders (as amended from time to time, the “Bridge Loan”), to extend the maturity date of the Bridge Loan from April 30, 2025 to May 31, 2025.
The foregoing description of the Fourteenth Bridge Loan Amendment does not purport to be complete and is qualified in its entirety by reference to the full text of the Fourteenth Bridge Loan Amendment, a copy of which is filed hereto as Exhibit 10.2.
Note Consent Agreement
On April 30, 2025, the Loan Parties entered into a Consent Agreement with and Lenders (the “Note Consent Agreement). The Note Consent Agreement granted relief under those certain secured subordinated convertible notes issued by the Company in favor of the Lenders, dated March 31, 2025 (the “2025 Notes”), such that certain minimum liquidity requirements under 2025 Notes are waived through May 31, 2025.
The foregoing description of the Note Consent Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Note Consent Agreement, a copy of which is filed hereto as Exhibit 10.3.
| Item 5.03 | Amendment to Articles of Incorporation of Company or Bylaws; Change in Fiscal Year. |
|---|
Amendment to Senior Preferred Stock Certificate of Designations
On April 30, 2025, the Company filed a Certificate of Amendment with the Secretary of State of the State of Delaware (the “Certificate of Amendment”), thereby amending the Certificate of Designations with respect to the Company’s Senior Convertible Preferred Stock (“Senior Preferred Stock”), as
filed with the Secretary of State of the State of Delaware on May 15, 2023 and as amended by that certain Certificate of Amendment filed with the Secretary of State of the State of Delaware on June 22, 2023 \(the “Certificate
of Designations”\). The Certificate of Amendment became effective upon filing.
The Certificate of Amendment amends the Certificate of Designations to clarify that the voting rights of the Senior Preferred Stock adjusted proportionately in connection with the 11-for-1 reverse stock split that the Company consummated on March 3, 2025. No other changes were made to the Certificate of Designations, as in effect immediately prior to the approval and adoption of the Certificate of Amendment.
The foregoing description of the Certificate of Amendment does not purport to be complete and is qualified in its entirety by reference to the full text of the Certificate of Amendment, which is filed herewith as Exhibit 3.1 and is incorporated herein by reference.
| Item 9.01. | Financial Statements and Exhibits. |
|---|---|
| Exhibit<br><br> <br>No. | Description |
| --- | --- |
| 3.1 | Certificate of Amendment to Certificate of Designations of Senior Convertible Preferred Stock, dated April 30, 2025. |
| 10.1 | Consent Agreement, dated April 30, 2025, by and among Venus Concept Inc., Venus Concept Canada Corp., Venus Concept USA Inc., Venus Concept Ltd., Madryn Health Partners, LP and Madryn Health<br> Partners (Cayman Master), LP |
| 10.2 | Fourteenth Amendment to Bridge Loan Agreement, dated April 30, 2025, by and among Venus Concept USA, Inc., Venus Concept Inc., Venus Concept Canada Corp., Venus Concept Ltd., Madryn Health<br> Partners, LP and Madryn Health Partners (Cayman Master), LP |
| 10.3 | Consent Agreement, dated April 30, 2025, by and among Venus Concept Inc., Venus Concept Canada Corp., Venus Concept USA Inc., Venus Concept Ltd., Madryn Health Partners, LP and Madryn Health<br> Partners (Cayman Master), LP |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| VENUS CONCEPT INC. | ||
|---|---|---|
| Date: May 2, 2025 | By: | /s/ Domenic Della Penna |
| Domenic Della Penna | ||
| Chief Financial Officer |
Exhibit 3.1
CERTIFICATE OF AMENDMENT TO
CERTIFICATE OF DESIGNATIONS OF
SENIOR CONVERTIBLE PREFERRED STOCK OF
VENUS CONCEPT INC.
Venus Concept Inc. (the “Corporation”), a corporation organized and existing under the General Corporation Law of the State of Delaware (the “DGCL”), hereby certifies that:
FIRST: The Corporation’s Certificate of Designations of Senior Convertible Preferred Stock was (i) filed with the Secretary of State of the State of Delaware on May 15, 2023 and (ii) amended by that certain Certificate of Amendment filed with the Secretary of State of the State of Delaware on June 22, 2023 (collectively, the “Certificate of Designations”).
SECOND: The Board of Directors of the Corporation, acting in accordance with the provisions of Sections 141(f) of the DGCL and the Corporation’s bylaws, as currently in effect, adopted resolutions to amend the Certificate of Designations as follows (collectively, the “Amendment”):
The definition of “Total Voting Amount” as set forth in Article 1 of the Certificate of Designations is amended and restated in its entirety as follows:
“Total Voting Amount” means, as of a specified time, a number (rounded down to the nearest whole number) equal to (I) the product of (a) the quotient of (i) the aggregate Purchase Price paid for all shares of Senior Preferred outstanding as of such time, divided by (ii) the highest Purchase Price paid for a share of Senior Preferred sold prior to or as of such time, multiplied by (b) two, divided by (II) eleven. The Total Voting Amount shall proportionately adjust in the event of any stock dividend, stock split, combination or similar action involving the Common Stock that occurs on or after April 30, 2025.
THIRD: The Amendment was duly adopted in accordance with the applicable provisions of Section 242 of the DGCL.
FOURTH: This Certificate of Amendment shall become effective immediately upon filing.
FIFTH: Except as amended pursuant to this Certificate of Amendment, the Certificate of Designations shall remain in full force and effect.
IN WITNESS WHEREOF, Venus Concept Inc. has caused this Certificate of Amendment to be executed by its duly authorized officer on and as of this 30th day of April 2025.
| VENUS CONCEPT INC. | |
|---|---|
| By: | /s/ Rajiv De Silva |
| Name: | Rajiv De Silva |
| Title: | CEO |
Exhibit 10.1
CONSENT AGREEMENT
This CONSENT AGREEMENT (the “Agreement”) dated as of April 30, 2025 (the “Effective Date”) is entered into among (a) VENUS CONCEPT USA INC., a Delaware corporation (the “Borrower”), (b) VENUS CONCEPT INC., a Delaware corporation (“Venus
Concept”\), \(c\) VENUS CONCEPT CANADA CORP., a corporation incorporated under the laws of the Province of Ontario \(“Venus Canada”\), \(d\) VENUS CONCEPT LTD., a company
formed under the Companies Law of Israel “Venus Israel” and, together with Venus Concept and Venus Canada, the “Guarantors”;
the Borrower and the Guarantors shall be referred to herein, collectively, as the “Loan Parties”\), and \(e\) each of \(i\) MADRYN HEALTH PARTNERS, LP, a Delaware limited partnership \(“Madryn Health”\) and \(ii\) MADRYN HEALTH PARTNERS \(CAYMAN MASTER\), LP, a Cayman Islands limited partnership \(“Madryn Cayman”
and, together with Madryn Health, the “Lenders”; together the Lender and the Loan Parties are hereinafter referred to as the “Parties”\).
Capitalized terms used but not otherwise defined herein shall have the meanings given to them in the Loan Agreement \(as defined below\).
RECITALS
WHEREAS, CITY NATIONAL BANK OF FLORIDA (“CNB”) and the Borrower were parties to that certain Loan and Security Agreement (Main Street Priority Loan), dated as of December 8, 2020 (as amended, restated, supplemented, waived or otherwise modified from time to time, the “Loan Agreement”), between CNB, as lender, and Borrower, pursuant to which CNB provided Borrower a term loan in the principal amount of Fifty Million Dollars ($50,000,000.00) (the “Loan”) issued pursuant to the Main Street Priority Loan Facility, all upon certain terms and conditions set forth in the Loan Agreement and in the other Loan Documents (as defined in the Loan Agreement), as amended by that certain Loan Amendment and Consent Agreement, dated as of May 24, 2024, made among the Loan Parties and the Lenders, that certain Loan Amendment and Consent Agreement, dated as of July 8, 2024, made among the Loan Parties and the Lenders and that certain Third Loan Amendment, First Subordination Agreement Amendment and Consent Agreement, dated as of September 26, 2024, made among the Loan Parties and the Lenders;
WHEREAS, to evidence Borrower’s repayment obligations under the Loan Agreement, Borrower executed a Promissory Note in favor of CNB dated December 8, 2020 (as amended, amended and restated, supplemented, waived, exchanged or otherwise modified from time to time, the “Original Note”), in the original principal amount of $50,000,000.00;
WHEREAS, in connection with the Loan, Venus Concept and Venus Canada have previously issued a Guaranty of Payment and Performance, originally dated as of December 8, 2020, in favor of the Lender (as amended, restated, amended and restated, supplemented or otherwise modified from time to time prior to the date hereof, the “Main Street Guaranty”);
WHEREAS, in connection with the Loan, (i) the Borrower, each Lender and CNB entered into that certain Subordination of Debt Agreement, dated as of December 8, 2020 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Borrower Main Street Subordination Agreement”),
\(ii\) Venus Concept, each Lender and CNB entered into that certain Subordination of Debt Agreement, dated as of December 8, 2020 \(as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Venus Concept. Main Street Subordination Agreement”\), \(iii\) Venus Canada, each Lender and CNB entered into that certain
Subordination of Debt Agreement, dated as of December 8, 2020 \(as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Canada Main Street Subordination Agreement”\), and \(iv\) the Venus Israel, each
Lender and CNB entered into that certain Subordination of Debt Agreement, dated as of October 4, 2023 \(as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Israeli Main Street Subordination Agreement” and, together with the Borrower Main Street Subordination Agreement, the Venus Concept Main Street Subordination Agreement and the Canada Main Street Subordination Agreement,
the “Madryn Main Street Subordination Agreements” and each, a “Madryn Main Street Subordination Agreement”\);
WHEREAS, pursuant to that certain Main Street Loan – Venus Concept – Sale and Assignment Agreement, dated as of April 23, 2024, between CNB and the Lenders, CNB assigned, transferred, and conveyed all of its rights, title, and interest in and to the Loan, Note, the Loan Agreement, the Main Street Guaranty, the Madryn Main Street Subordination Agreements, all other Loan Documents and any related documents to the Lenders;
WHEREAS, pursuant to that certain Exchange Agreement, dated as of May 24, 2024, and made among the Borrower, Venus Concept, and the Lenders, the Lenders exchanged the Original Note for (a) two new promissory notes issued by the Borrower to each of Madryn Health and Madryn Cayman (as amended, amended and restated, supplemented, waived, exchanged or otherwise modified from time to time, collectively, the “May 2024 Notes”) and (b) shares of preferred stock of Venus Concept;
WHEREAS, pursuant to that certain Exchange Agreement, dated as of September 26, 2024, and made among the Borrower, Venus Concept, and the Lenders, the Lenders exchanged the May 2024 Notes for (a) two new promissory notes issued by the Borrower to each of Madryn Health and Madryn Cayman (as amended, amended and restated, supplemented, waived, exchanged or otherwise modified from time to time, collectively, the “Notes” and each, a “Note”) and (b) shares of preferred stock of Venus Concept;
WHEREAS, the Borrower will be required to pay to the Lenders accrued interest on the Notes on May 8, 2025 (such interest, the “May
2025 Interest”\);
WHEREAS, the Borrower has requested that in lieu of paying the May 2025 Interest in cash, the Lenders consent to the payment by the Borrower of the May 2025 Interest by adding such interest to the outstanding principal amount of the Loan effective as of May 8, 2025 (such payment, the “May 2025 PIK Interest Payment”);
WHEREAS, the Borrower has requested relief from the obligation to comply with the requirements of Section 7(a) of the Loan Agreement (“Liquidity”) in respect of the Borrower’s minimum liquidity amounts (“Requested Minimum Liquidity Consent”); and
WHEREAS, the Lenders are willing to consent to the May 2025 PIK Interest Payment and the Requested Minimum Liquidity Consent, subject to the terms and conditions hereof, and amend the Loan Agreement;
NOW, THEREFORE, in consideration of the promises and the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
| 1. | Consents. |
|---|---|
| (a) | May 2025 PIK Interest Payment Consent. |
| --- | --- |
(i) Subject to the other terms and conditions of this Agreement, the Lenders hereby consent to the May 2025 PIK Interest Payment. The above consent shall not otherwise modify or affect the Borrower and the other Loan Parties’ obligations to comply fully with any other duty, term, condition or covenant contained in the Loan Agreement, the Notes, or any other Loan Document in the future and is limited solely to the matters set forth in this Section 1(a). Nothing contained in this Agreement shall be deemed to constitute a waiver of any duty, term, condition or covenant contained in the Loan Agreement, the Notes or any other Loan Document in the future, or any other rights or remedies any Lender may have under the Loan Agreement, the Notes or any other Loan Documents or under applicable law.
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(ii) The Borrower and the Lenders acknowledge and agree that in lieu of making cash payment of the May 2025 Interest, the Borrower will pay such interest to the Lenders on May 8, 2025 by adding such interest to the outstanding principal amount of the Loan on such date. Any and all such paid-in-kind interest so added to the principal amount of the Loan shall constitute and increase the principal amount of the Loans for all purposes under this Agreement and shall bear interest in accordance with the provisions of the Loan Agreement and Notes.
(b) Requested Minimum Liquidity Consent. The Lenders, as of the date hereof, hereby approve the Requested Minimum Liquidity Consent and agree that until May 31, 2025, the failure of any of the Loan Parties to comply with the obligations of Section 7(a) of the Loan Agreement shall not constitute an Event of Default under the Loan Agreement or the Notes. The above consent shall not otherwise modify or affect the Borrower’s and the other Loan Parties’ obligations to comply fully with the terms of the Loan Agreement, the Notes or any other Loan Document in the future and is limited solely to the matters set forth in this Section
1\(b\). Nothing contained in this Agreement shall be deemed to constitute a waiver of any duty, term, condition or covenant contained in the Loan Agreement, the Notes or any other Loan Document in the future, or any other rights
or remedies any Lender may have under the Loan Agreement, the Notes or any other Loan Documents or under applicable law.
2. Conditions Precedent. This Agreement shall be effective upon the date on which the Lenders shall have received counterparts of this Agreement duly executed by the Borrower, the Guarantors, and the Lenders.
3. Reaffirmation. Each of the Loan Parties acknowledges and reaffirms (a) that it is bound by all of the terms of the Loan Documents to which it is a party and (b) that it is responsible for the observance and full performance of all Obligations, including without limitation, the repayment of the Loan. Furthermore, the Loan Parties acknowledge and confirm that by entering into this Agreement, the Lenders do not, except as expressly set forth herein, waive or release any term or condition of the Loan Agreement, the Notes or any of the other Loan Documents or any of their rights or remedies under such Loan Documents or any applicable law or any of the obligations of the Loan Parties thereunder.
4. Representations and Warranties. Each Loan Party represents and warrants to the Lenders as follows:
(a) As of the Effective Date, no Event of Default has occurred and is continuing.
(b) The representations and warranties of the Borrower and each other Loan Party contained in Section 5 of the Loan Agreement, or which are contained in any document furnished at any time under or in connection therewith, are true and correct in all material respects(and in all respects if any such representation and warranty is already qualified by materiality or reference to material adverse effect) on and as of the Effective Date, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct in all material respects (and in all respects if any such representation and warranty is already qualified by materiality or reference to material adverse effect) as of such earlier date.
(c) Each Loan Party has the full power and authority to enter into, execute and deliver this Agreement and perform its obligations hereunder, under the Loan Agreement and under each of the other Loan Documents. The execution, delivery and performance by each Loan Party of this Agreement, and the performance by each Loan Party of the Loan Agreement and each other Loan Document to which it is a party, in each case, are within such person’s powers and have been authorized by all necessary corporate action of such person.
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(d) This Agreement has been duly executed and delivered by such person and constitutes such person’s legal, valid and binding obligations, enforceable in accordance with its terms, except as such enforceability may be subject to (i) bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer, moratorium or similar laws affecting creditors’ rights generally and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding at law or in equity).
(e) No consent, approval, authorization or order of, or filing, registration or qualification with, any court or governmental authority or third party is required in connection with the execution, delivery or performance by such person of this Agreement.
(f) The execution and delivery of this Agreement does not (i) violate, contravene or conflict with any provision of its organization documents or (ii) materially violate, contravene or conflict with any laws applicable to it or its subsidiaries.
(g) The Loan Parties’ obligations are not reduced or modified by this Agreement and are not subject to any offsets, defenses or counterclaims.
5. Release. As a material part of the consideration for the Lenders entering into this Agreement (this Section 5, the “Release Provision”):
(a) Each Loan Party agrees that the Lenders, each of their respective affiliates and each of the foregoing persons’ respective officers, managers, members, directors, advisors, sub-advisors, partners, agents and employees, and their respective successors and assigns (hereinafter all of the above collectively referred to as the “Lender Group”), are irrevocably and unconditionally released, discharged and acquitted from any and all actions, causes of action, claims, demands, damages and liabilities of whatever kind or nature, in law or in equity, now known or unknown, suspected or unsuspected to the extent that any of the foregoing arises from any action or failure to act under or otherwise arising in connection with the Loan Agreement, the Notes or the other Loan Documents on or prior to the date hereof.
(b) Each Loan Party hereby acknowledges, represents and warrants to the Lender Group that:
(i) it has read and understands the effect of the Release Provision. Each Loan Party has had the assistance of independent counsel of its own choice, or has had the opportunity to retain such independent counsel, in reviewing, discussing, and considering all the terms of the Release Provision; and if counsel was retained, counsel for such Loan Party has read and considered the Release Provision and advised such Loan Party with respect to the same. Before execution of this Agreement, each Loan Party has had adequate opportunity to make whatever investigation or inquiry it may deem necessary or desirable in connection with the subject matter of the Release Provision.
(ii) no Loan Party is acting in reliance on any representation, understanding, or agreement not expressly set forth herein. Each Loan Party acknowledges that the Lender Group has not made any representation with respect to the Release Provision except as expressly set forth herein.
(iii) each Loan Party has executed this Agreement and the Release Provisionthereof as its free and voluntary act, without any duress, coercion, or undue influence exerted by or on behalf of any person.
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(iv) each Loan Party is the sole owner of its respective claims released by the Release Provision, and no Loan Party has heretofore conveyed or assigned any interest in any such claims to any other Person.
(c) The Loan Parties understand that the Release Provision was a material consideration in the agreement of the Lenders to enter into this Agreement. The Release Provision shall be in addition to any right, privileges and immunities granted to the Lenders under the Loan Documents.
| 6. | Miscellaneous. |
|---|
(a) The Loan Agreement and the Notes, each as may be modified hereby, and the obligations of the Loan Parties thereunder and under the other Loan Documents, are hereby ratified and confirmed and shall remain in full force and effect according to their terms. This Agreement shall constitute a Loan Document under the Loan Agreement.
(b) This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be an original, but all of which shall constitute one and the same instrument. Delivery of an executed counterpart of this Agreement by telecopy shall be effective as an original and shall constitute a representation that an executed original shall be delivered.
(c) THIS
AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.
[Signature pages follow]
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the date first above written.
| VENUS CONCEPT USA INC., | |
|---|---|
| as Borrower and a Grantor | |
| By: | /s/ Rajiv De Silva |
| Name: | Rajiv De Silva |
| Title: | President and Assistant Secretary |
| VENUS CONCEPT INC., | |
| --- | --- |
| as a Guarantor and a Grantor | |
| By: | /s/ Rajiv De Silva |
| Name: | Rajiv De Silva |
| Title: | Chief Executive Officer |
| VENUS CONCEPT CANADA CORP., | |
| --- | --- |
| as a Guarantor and a Grantor | |
| By: | /s/ Michael Mandarello |
| Name: | Michael Mandarello |
| Title: | President and General Manager |
| VENUS CONCEPT LTD, | |
| --- | --- |
| as a Guarantor and a Grantor | |
| By: | /s/ Rajiv De Silva |
| Name: | Rajiv De Silva |
| Title: | Chief Executive Officer |
| MADRYN HEALTH PARTNERS, LP, as a Lender | |
|---|---|
| By: | MADRYN HEALTH ADVISORS, LP, |
| its General Partner | |
| By: | MADRYN HEALTH ADVISORS GP, LLC, |
| its General Partner | |
| By: | /s/ Avinash Amin |
| --- | --- |
| Name: | Avinash Amin |
| Title: | Member |
| MADRYN HEALTH PARTNERS (CAYMAN | |
| --- | --- |
| MASTER), LP, as a Lender | |
| By: | MADRYN HEALTH ADVISORS, LP, |
| its General Partner | |
| By: | MADRYN HEALTH ADVISORS GP, LLC, |
| its General Partner | |
| By: | /s/ Avinash Amin |
| --- | --- |
| Name: | Avinash Amin |
| Title: | Member |
Exhibit 10.2
FOURTEENTH AMENDMENT TO BRIDGE LOAN AGREEMENT
This FOURTEENTH AMENDMENT TO BRIDGE LOAN AGREEMENT (this “Agreement”), dated as of April 30, 2025 (the “Effective Date”), is entered into among (a) VENUS CONCEPT USA INC., a Delaware corporation (the “Borrower”),
\(b\) VENUS CONCEPT INC., a Delaware corporation \(“Venus Concept”\), \(c\) VENUS CONCEPT CANADA CORP., a corporation incorporated
under the laws of the Province of Ontario \(“Venus Canada”\), \(d\) VENUS CONCEPT LTD., a company formed under the Companies Law of Israel \(“Venus
Israel” and, together with Venus Concept and Venus Canada, the “Guarantors”; the Borrower and the Guarantors shall be referred to herein, collectively, as the “Loan Parties”\), \(e\) MADRYN HEALTH PARTNERS, LP, a Delaware limited partnership, and MADRYN HEALTH PARTNERS \(CAYMAN MASTER\), LP, a
Cayman Islands limited partnership, as Lenders \(the “Lenders”, and each, a “Lender”\) and \(f\) MADRYN HEALTH PARTNERS, LP, a
Delaware limited partnership, as Administrative Agent \(the “Agent”\). Capitalized terms used but not otherwise defined herein have the meanings provided in the Loan Agreement \(as defined
below\).
RECITALS
WHEREAS, the Loan Parties, the Lenders and the Agent entered into that certain Loan and Security Agreement, dated as of April 23, 2024 (as amended, restated, supplemented, waived or otherwise modified from time to time, the “Loan Agreement”), pursuant to which the Lenders agreed to make a term loan to the Borrower in the original principal amount of $2,237,906.85 and one or more delayed draw term loans of up to an additional principal amount of $21,000,000.00, in each case, subject to the terms and conditions of the Loan Agreement;
WHEREAS, the Borrower has requested that the Loan Agreement be amended to provide for certain modifications thereto; and
WHEREAS, the Lenders are willing to amend the Loan Agreement, subject to the terms and conditions of this Agreement.
NOW, THEREFORE, in consideration of the promises and the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
1. Amendment to Loan Agreement. The definition of “Maturity Date” in Section 1.01 of the Loan Agreement is hereby amended by replacing the text “April 30, 2025” with the text “May 31, 2025”.
2. Conditions Precedent. This Agreement shall be effective upon the date on which the Lenders shall have received counterparts of this Agreement duly executed by the Borrower, the Guarantors, and the Lenders.
3. Reaffirmation. Each of the Loan Parties acknowledges and reaffirms (a) that it is bound by all of the terms of the Loan Documents to which it is a party and (b) that it is responsible for the observance and full performance of all Obligations, including without limitation, the repayment of the Term Loan. Furthermore, the Loan Parties acknowledge and confirm that by entering into this Agreement, the Lenders do not, except as expressly set forth herein, waive or release any term or condition of the Loan Agreement or any of the other Loan Documents or any of their rights or remedies under such Loan Documents or any applicable law or any of the obligations of the Loan Parties thereunder.
4. Representations and Warranties. Each Loan Party represents and warrants to the Lenders as follows:
(a) As of the Effective Date, no Event of Default has occurred and is continuing.
(b) The representations and warranties of the Borrower and each other Loan Party contained in Article IV of the Loan Agreement, or which are contained in any document furnished at any time under or in connection therewith, are true and correct in all material respects (and in all respects if any such representation and warranty is already qualified by materiality or reference to material adverse effect) on and as of the Effective Date, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct in all material respects (and in all respects if any such representation and warranty is already qualified by materiality or reference to material adverse effect) as of such earlier date.
(c) Each Loan Party has the full power and authority to enter into, execute and deliver this Agreement and perform its obligations hereunder, under the Loan Agreement and under each of the other Loan Documents. The execution, delivery and performance by each Loan Party of this Agreement, and the performance by each Loan Party of the Loan Agreement and each other Loan Document to which it is a party, in each case, are within such person’s powers and have been authorized by all necessary corporate action of such person.
(d) This Agreement has been duly executed and delivered by such person and constitutes such person’s legal, valid and binding obligations, enforceable in accordance with its terms, except as such enforceability may be subject to (i) bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer, moratorium or similar laws affecting creditors’ rights generally and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding at law or in equity).
(e) No consent, approval, authorization or order of, or filing, registration or qualification with, any court or Governmental Authority or third party is required in connection with the execution, delivery or performance by such person of this Agreement.
(f) The execution and delivery of this Agreement does not (i) violate, contravene or conflict with any provision of its organization documents or (ii) materially violate, contravene or conflict with any laws applicable to it or its subsidiaries.
(g) The Loan Parties’ obligations are not reduced or modified by this Agreement and are not subject to any offsets, defenses or counterclaims.
5. Release. As a material part of the consideration for the Lenders entering into this Agreement (this Section 5, the “Release Provision”):
(a) Each Loan Party agrees that the Lenders, each of their respective affiliates and each of the foregoing persons’ respective officers, managers, members, directors, advisors, sub- advisors, partners, agents and employees, and their respective successors and assigns (hereinafter all of the above collectively referred to as the “Lender Group”), are irrevocably and unconditionally released, discharged and acquitted from any and all actions, causes of action, claims, demands, damages and liabilities of whatever kind or nature, in law or in equity, now known or unknown, suspected or unsuspected to the extent that any of the foregoing arises from any action or failure to act under or otherwise arising in connection with the Loan Agreement or the other Loan Documents on or prior to the date hereof.
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(b) Each Loan Party hereby acknowledges, represents and warrants to the Lender Group that:
(i) it has read and understands the effect of the Release Provision. Each Loan Party has had the assistance of independent counsel of its own choice, or has had the opportunity to retain such independent counsel, in reviewing, discussing, and considering all the terms of the Release Provision; and if counsel was retained, counsel for such Loan Party has read and considered the Release Provision and advised such Loan Party with respect to the same. Before execution of this Agreement, each Loan Party has had adequate opportunity to make whatever investigation or inquiry it may deem necessary or desirable in connection with the subject matter of the Release Provision.
(ii) no Loan Party is acting in reliance on any representation, understanding, or agreement not expressly set forth herein. Each Loan Party acknowledges that the Lender Group has not made any representation with respect to the Release Provision except as expressly set forth herein.
(iii) each Loan Party has executed this Agreement and the Release Provision thereof as its free and voluntary act, without any duress, coercion, or undue influence exerted by or on behalf of any person.
(iv) each Loan Party is the sole owner of its respective claims released by the Release Provision, and no Loan Party has heretofore conveyed or assigned any interest in any such claims to any other Person.
(c) The Loan Parties understand that the Release Provision was a material consideration in the agreement of the Lenders to enter into this Agreement. The Release Provision shall be in addition to any right, privileges and immunities granted to the Lenders under the Loan Documents.
6. Miscellaneous.
(a) The Loan Agreement, as modified hereby, and the obligations of the Loan Parties thereunder and under the other Loan Documents, are hereby ratified and confirmed and shall remain in full force and effect according to their terms. This Agreement shall constitute a Loan Document under the Loan Agreement.
(b) This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be an original, but all of which shall constitute one and the same instrument. Delivery of an executed counterpart of this Agreement by telecopy shall be effective as an original and shall constitute a representation that an executed original shall be delivered.
(c) THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.
Signature pages follow
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the date first above written.
| VENUS CONCEPT USA INC., | |
|---|---|
| as Borrower | |
| By: | /s/ Rajiv De Silva |
| Name: | Rajiv De Silva |
| Title: | President and Assistant Secretary |
| VENUS CONCEPT INC., | |
| as a Guarantor | |
| By: | /s/ Rajiv De Silva |
| Name: | Rajiv De Silva |
| Title: | Chief Executive Officer |
| VENUS CONCEPT CANADA CORP., | |
| as a Guarantor | |
| By: | /s/ Michael Mandarello |
| Name: | Michael Mandarello |
| Title: | President and General Manager |
| VENUS CONCEPT LTD, | |
| as a Guarantor | |
| By: | /s/ Rajiv De Silva |
| Name: | Rajiv De Silva |
| Title: | Chief Executive Officer |
Fourteenth Amendment to Bridge Loan Agreement
| MADRYN HEALTH PARTNERS, LP, as a Lender | |
|---|---|
| By: | MADRYN HEALTH ADVISORS, LP, |
| its General Partner | |
| By: | MADRYN HEALTH ADVISORS GP, LLC, |
| its General Partner | |
| By: | /s/ Avinash Amin |
| Name: | Avinash Amin |
| Title: | Member |
| MADRYN HEALTH PARTNERS (CAYMAN | |
| MASTER), LP, as a Lender | |
| By: | MADRYN HEALTH ADVISORS, LP, |
| its General Partner | |
| By: | MADRYN HEALTH ADVISORS GP, LLC, |
| its General Partner | |
| By: | /s/ Avinash Amin |
| Name: | Avinash Amin |
| Title: | Member |
| MADRYN HEALTH PARTNERS, LP, as | |
| Administrative Agent | |
| By: | MADRYN HEALTH ADVISORS, LP, |
| its General Partner | |
| By: | MADRYN HEALTH ADVISORS GP, LLC, |
| its General Partner | |
| By: | /s/ Avinash Amin |
| Name: | Avinash Amin |
| Title: | Member |
Fourteenth Amendment to Bridge Loan Agreement
Exhibit 10.3
CONSENT AGREEMENT
This CONSENT AGREEMENT (the “Agreement”) dated as of April 30, 2025 (the “Effective Date”) is entered into among (a) VENUS CONCEPT INC., a Delaware corporation (“Venus Concept”), (b) the Guarantors party hereto (the “Guarantors”,
and together with Venus Concept, the “Loan Parties”\) and \(c\) each of \(i\) MADRYN HEALTH PARTNERS, LP, a Delaware limited partnership \(“Madryn
Health”\) and \(ii\) MADRYN HEALTH PARTNERS \(CAYMAN MASTER\), LP, a Cayman Islands limited partnership \(“Madryn Cayman” and, together with Madryn Health, the “Lenders”; together the Lender and the Venus Concept are hereinafter referred to as the “Parties”\). Capitalized terms used but
not otherwise defined herein shall have the meanings given to them in the Notes \(as defined below\).
RECITALS
WHEREAS, the Lenders and Venus Concept were parties to that certain Securities Exchange Agreement, dated as of December 8, 2020 (as amended, restated, supplemented, waived or otherwise modified from time to time), pursuant to which the Lenders agreed to exchange a portion of Venus Concept’s existing debt for (a) two new promissory notes issued by Venus Concept to each of Madryn Health and Madryn Cayman (as amended, amended and restated, supplemented, waived, exchanged or otherwise modified from time to time, collectively, the “Original Notes”);
WHEREAS, pursuant to that certain Exchange Agreement, dated as of dated as of October 4, 2023, and made among Venus Concept and the Lenders, the Lenders exchanged the Original Notes for (a) two new promissory notes issued by Venus Concept to each of Madryn Health and Madryn Cayman (as amended, amended and restated, supplemented, waived, exchanged or otherwise modified from time to time, collectively, the “October 2023 Notes”) and (b) shares of preferred stock of Venus Concept;
WHEREAS, pursuant to that certain Exchange Agreement, dated as of March 31, 2025, and made among Venus Concept and the Lenders, the Lenders (the “Exchange Agreement”), the Lenders exchanged the October 2023 Notes for (a) two new promissory notes issued by Venus Concept to each of Madryn Health and Madryn Cayman (as amended, amended and restated, supplemented, waived, exchanged or otherwise modified from time to time, collectively, the “Notes” and each, a “Note”) and (b) shares of preferred stock of Venus Concept;
WHEREAS, Venus Concept has requested relief from the obligation to comply with the requirements of Section 12.16 (Liquidity) of each Note in respect of Venus Concept’s minimum liquidity amounts (“Requested Minimum Liquidity Consent”); and
WHEREAS, the Lenders are willing to consent to and the Requested Minimum Liquidity Consent, subject to the terms and conditions hereof;
NOW, THEREFORE, in consideration of the promises and the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
1. Requested Minimum Liquidity Consent. The Lenders, as of the date hereof, hereby approve the Requested Minimum Liquidity Consent and agree that until May 31, 2025, the failure of Venus Concept to comply with the obligations of Section 12.16 (Liquidity) of each Note shall not constitute an Event of Default under the Notes. The above consent shall not otherwise modify or affect Venus Concept’s obligations to comply fully with the terms of the Exchange Agreement or the Notes in the future and is limited solely to the matters set forth in this Section 1. Nothing contained in this Agreement shall be deemed to constitute a waiver of any duty, term, condition or covenant contained in the Exchange Agreement or the Notes in the future, or any other rights or remedies any Lender may have under the Exchange Agreement or the Notes or under applicable law.
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2. Conditions Precedent. This Agreement shall be effective upon the date on which the Lenders shall have received counterparts of this Agreement duly executed by Venus Concept, the Guarantors and the Lenders.
3. Reaffirmation. Each of the Loan Parties acknowledges and reaffirms (a) that it is bound by all of the terms of the Exchange Agreement and Notes to which it is a party and (b) that it is responsible for the observance and full performance of all obligations under the Exchange Agreement and Notes, including without limitation, the repayment of the Notes. Furthermore, each Loan Party acknowledges and confirms that by entering into this Agreement, the Lenders do not, except as expressly set forth herein, waive or release any term or condition of the Exchange Agreement or the Notes or any applicable law or any of the obligations of the Loan Parties thereunder.
4. Representations and Warranties. Each Loan Party represents and warrants to the Lenders as follows:
(a) As of the Effective Date, no Event of Default has occurred and is continuing.
(b) The representations and warranties of Venus Concept (including on behalf of its subsidiaries, as applicable) contained in Section 3.1 of the Exchange Agreement, or which are contained in any document furnished at any time under or in connection therewith, are true and correct in all material respects (and in all respects if any such representation and warranty is already qualified by materiality or reference to material adverse effect) on and as of the Effective Date, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct in all material respects (and in all respects if any such representation and warranty is already qualified by materiality or reference to material adverse effect) as of such earlier date.
(c) Each Loan Party has the full power and authority to enter into, execute and deliver this Agreement and perform its obligations hereunder, under the Exchange Agreement and under each of the Notes. The execution, delivery and performance by each Loan Party of this Agreement, and the performance by each Loan Party of the Exchange Agreement and each Note to which it is a party, in each case, are within such person’s powers and have been authorized by all necessary corporate action of such person.
(d) This Agreement has been duly executed and delivered by such person and constitutes such person’s legal, valid and binding obligations, enforceable in accordance with its terms, except as such enforceability may be subject to (i) bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer, moratorium or similar laws affecting creditors’ rights generally and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding at law or in equity).
(e) No consent, approval, authorization or order of, or filing, registration or qualification with, any court or governmental authority or third party is required in connection with the execution, delivery or performance by such person of this Agreement.
(f) The execution and delivery of this Agreement does not (i) violate, contravene or conflict with any provision of its organization documents or (ii) materially violate, contravene or conflict with any laws applicable to it or its subsidiaries.
(g) The Loan Parties’ obligations are not reduced or modified by this Agreement and are not subject to any offsets, defenses or counterclaims.
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5. Release. As a material part of the consideration for the Lenders entering into this Agreement (this Section 5, the “Release Provision”):
(a) Each Loan Party agrees that the Lenders, each of their respective affiliates and each of the foregoing persons’ respective officers, managers, members, directors, advisors, sub- advisors, partners, agents and employees, and their respective successors and assigns (hereinafter all of the above collectively referred to as the “Lender Group”), are irrevocably and unconditionally released, discharged and acquitted from any and all actions, causes of action, claims, demands, damages and liabilities of whatever kind or nature, in law or in equity, now known or unknown, suspected or unsuspected to the extent that any of the foregoing arises from any action or failure to act under or otherwise arising in connection with the Exchange Agreement or the Notes on or prior to the date hereof.
(b) Each Loan Party hereby acknowledges, represents and warrants to the Lender Group that:
(i) it has read and understands the effect of the Release Provision. Each Loan Party has had the assistance of independent counsel of its own choice, or has had the opportunity to retain such independent counsel, in reviewing, discussing, and considering all the terms of the Release Provision; and if counsel was retained, counsel for such Loan Party has read and considered the Release Provision and advised each Loan Party with respect to the same. Before execution of this Agreement, each Loan Party has had adequate opportunity to make whatever investigation or inquiry it may deem necessary or desirable in connection with the subject matter of the Release Provision.
(ii) no Loan Party is acting in reliance on any representation, understanding, or agreement not expressly set forth herein. Each Loan Party acknowledges that the Lender Group has not made any representation with respect to the Release Provision except as expressly set forth herein.
(iii) each Loan Party has executed this Agreement and the Release Provision thereof as its free and voluntary act, without any duress, coercion, or undue influence exerted by or on behalf of any person.
(iv) each Loan Party is the sole owner of its respective claims released by the Release Provision, and no Loan Party has heretofore conveyed or assigned any interest in any such claims to any other Person.
(c) The Loan Parties understand that the Release Provision was a material consideration in the agreement of the Lenders to enter into this Agreement. The Release Provision shall be in addition to any right, privileges and immunities granted to the Lenders under the Exchange Agreement or Notes.
- Miscellaneous.
(a) The Exchange Agreement and the Notes, each as may be modified hereby, and the obligations of the Loan Parties thereunder, are hereby ratified and confirmed and shall remain in full force and effect according to their terms.
(b) This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be an original, but all of which shall constitute one and the same instrument. Delivery of an executed counterpart of this Agreement by telecopy shall be effective as an original and shall constitute a representation that an executed original shall be delivered.
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(c) THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.
[Signature pages follow]
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the date first above written.
| VENUS CONCEPT USA INC., | |
|---|---|
| as Borrower and a Grantor | |
| By: | /s/ Rajiv De Silva |
| Name: | Rajiv De Silva |
| Title: | President and Assistant Secretary |
| VENUS CONCEPT INC., | |
| as a Guarantor and a Grantor | |
| By: | /s/ Rajiv De Silva |
| Name: | Rajiv De Silva |
| Title: | Chief Executive Officer |
| VENUS CONCEPT CANADA CORP., | |
| as a Guarantor and a Grantor | |
| By: | /s/ Michael Mandarello |
| Name: | Michael Mandarello |
| Title: | President and General Manager |
| VENUS CONCEPT LTD, | |
| as a Guarantor and a Grantor | |
| By: | /s/ Rajiv De Silva |
| Name: | Rajiv De Silva |
| Title: | Chief Executive Officer |
| MADRYN HEALTH PARTNERS, LP, as a Lender | |
|---|---|
| By: | MADRYN HEALTH ADVISORS, LP, |
| its General Partner | |
| By: | MADRYN HEALTH ADVISORS GP, LLC, |
| its General Partner | |
| By: | /s/ Avinash Amin |
| Name: | Avinash Amin |
| Title: | Member |
| MADRYN HEALTH PARTNERS (CAYMAN | |
| MASTER), LP, as a Lender | |
| By: | MADRYN HEALTH ADVISORS, LP, |
| its General Partner | |
| By: | MADRYN HEALTH ADVISORS GP, LLC, |
| its General Partner | |
| By: | /s/ Avinash Amin |
| Name: | Avinash Amin |
| Title: | Member |