Venus Concept to sell Venus Hair business for $20M

Venus Concept (VERO) entered into a definitive agreement to sell its Venus Hair business to MHG Co. in an all-cash transaction valued at $20M, subject to a customary working capital adjustment. The net proceeds from the transaction, once completed, will enhance the Company’s balance sheet and financial condition and provide valuable capital to fund strategic growth initiatives. Under the definitive agreement, Meta Healthcare Group will acquire Meta Robotics, a newly formed subsidiary of Venus Concept, containing the Company’s portfolio of hair restoration and hair transplant technologies, related equipment, services and assets, including intellectual property relating to ARTAS and NeoGraft. Meta Healthcare Group will grant a perpetual, royalty-free, worldwide license to Venus Concept with respect to a subset of transferred patents. Additionally, Meta Healthcare Group will assume the Company’s manufacturing and research and development facility in San Jose, California, as well as the rights to manufacture NeoGraft. The transaction is expected to close in the third quarter of 2025, subject to the satisfaction or waiver of certain closing conditions, including an internal reorganization of the Hair business within Meta Robotics. Revenue from the sale of ARTAS and NeoGraft systems, procedure kits and warranty revenue totaled approximately $12.5M in fiscal year 2024. Cash used in operations related to Venus Concept’s hair restoration and hair transplant businesses totaled approximately $6.7M in fiscal year 2024 based on management estimates. The Company intends to continue its ongoing evaluation of strategic alternatives to maximize shareholder value.