Venus Concept Inc. ( VERO ) shares traded higher on Wednesday after the company secured $23.24 million in bridge financing from Madryn Health Partners.

What To Know: Venus Concept ( VERO ) announced that entered into a Loan and Security Agreement with lenders last year. The company announced late Tuesday that the lenders agreed to provide bridge financing of approximately $23.24 million, up from the previous agreement of up to $5 million.

In addition, Venus Concept ( VERO ) announced it exchanged $11 million in subordinated convertible notes for 379,311 shares of Series Y preferred stock. This transaction reduces the company’s total debt to approximately $35.5 million, down significantly from $76.7 million a year ago and from $39.7 million at the end of last quarter.

The price action in shares potentially reflects the investor response to a combination of new capital inflow and a reduced debt burden. The financing deal and debt conversion may signal stronger short-term liquidity and an effort to restructure obligations, both of which appear to be giving traders confidence.

It’s also worth noting that Venus Concept ( VERO ) is considered a low-float stock with just 536,698 shares available for public trading, per Benzinga Pro. The company also had a market cap of less than $2 million as of Tuesday's close. Low-float, micro-cap stocks can be very volatile, which may help explain some of Wednesday's surge.

Is VERO A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like Venus Concept ( VERO )‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. Venus Concept ( VERO ) does not pay a dividend, but obviously has a few ways it can return value to shareholders.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Venus Concept ( VERO ) will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

VERO Price Action: Venus shares closed Wednesday up 205.8% at $8.93, according to Benzinga Pro.

Read Next:

Wall Street Roars As Trump Pauses Tariffs For Non-Retaliator, Hikes China Duties To 125%