Venus Concept Announces $17 Million Equity Financing Led By Masters Special Situations

Venus Concept Inc. a global medical aesthetic technology leader, announced that it has completed a non-brokered private placement of common shares of the Company and preferred nonvoting shares. Pursuant to the Private Placement, an aggregate of 9,808,418 Shares and 3,790,755 Preferred Nonvoting Shares were issued at a price of US$1.25 per share, for aggregate gross proceeds to the Company of approximately $17 million. The preferred nonvoting shares are convertible on a one-for-one basis into Shares upon receipt of conversion notice by the Company from the holder. The financing was led by a new investor – Masters Special Situations, LLC and affiliates thereof (“Masters”). Existing investors, EW Healthcare Partners and HealthQuest Capital, and independent director, Keith Sullivan, also participated in the financing. The gross proceeds to the Company from the Private Placement are expected to be $17 million, before offering expenses, which will be used for working capital, general corporate purposes and funding the development of AIme™, the Company’s next generation robotic technology platform for medical aesthetic applications. In connection with the Private Placement, Masters will receive the right to nominate a director to the board of directors of the Company and intends to nominate Dr. S. Tyler Hollmig. Dr. Hollmig is Director of Dermatologic Surgery and Director of Laser & Cosmetic Dermatology at Dell Medical School at the University of Texas and Ascension Texas.

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“This equity financing provides Venus Concept with the requisite capital to advance our strategic growth initiatives, including our efforts to develop the next generation robotic technology platform for medical aesthetic applications,” said Domenic Serafino, Chief Executive Officer and Director of Venus Concept Inc. “In addition, we believe this financing will help us to achieve cash flow positivity in the fourth quarter of 2022. We appreciate the continued support from our existing investors that participated in this capital raise and look forward to a strong partnership with our new investor, Masters Special Situations.”

“We believe the long-term growth opportunity for Venus Concept is compelling, particularly as they execute their strategy to introduce disruptive robotic technologies to the medical aesthetics market,” said Anthony Raab, Managing Director of Masters Special Situations, LLC. “We expect this equity financing will enable the Company to fund its strategic growth initiatives, including AIme, the robotic technology platform that will initially offer non-surgical skin tightening and directional lifting procedures. We look forward to the Company achieving an important clinical milestone in the coming weeks; specifically, beginning patient enrollment in the Company’s prospective, interventional clinical trial evaluating the safety and efficacy of AIme for the treatment of moderate to severe facial wrinkles.”

The offer and sale of the foregoing securities are being made in a transaction not involving a public offering and have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or applicable state securities laws, and will be sold in a private placement pursuant to Section 4(a)(2) and/or Regulation D of the Securities Act. The securities may not be offered or sold in the United States absent registration or pursuant to an exemption from the registration requirements of the Securities Act and applicable state securities laws. The Company has agreed to file a registration statement covering the resale of the common stock acquired by the investors in the private placement.

This press release does not constitute an offer to sell or the solicitation of an offer to buy the securities, nor shall there be any sale of the securities in any state or jurisdiction in which such offer or sale would be unlawful prior to the registration or qualification under the securities laws of such state or jurisdiction.

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