A leader in the dermatology industry, PhotoMedex Inc., manufactures the no!no! line of hair removal products along with a variety of treatments for skin conditions like psoriasis. According to a new Biz Journals report, PhotoMedex recently raised $1.4 million through a private stock sale designed to combat diminishing prices.
It’s no secret that many women suffer from unwanted face and body hair. While some women are content to shave or pluck hair each month, others seek a more permanent solution to hair removal. Created by PhotoMedex, the parent company for Radiancy Inc., the no!no! line of hair removal products uses heat to remove undesirable hair. Unlike other hair removal methods, no!no! claims to work safely on all complexions, without leaving bumps and pimples. Additionally, marketers insist that no!no! offers painless hair removal.
Still, not everyone is a proponent of this hair removal technique. While some users balk at the high cost of no!no!, other customers protest that it takes too long to achieve the desired results. For whatever reason, PhotoMedex has endured low profit margins in recent years. In fact, this past year, PhotoMedex earned less than $156 million in revenue, suffering a net loss of $19 million.
PhotoMedex’s financial problems led the company to seek a new forbearance agreement with lenders. In May of last year, PhotoMedex entered into an $85 million loan deal, which included a $10 million revolving credit line and a $75 million term loan, in order to refinance its debt. However, after the company failed to meet the terms of the initial loan, it received a notice of default from Chase, the lenders’ administrative agent.
As a result of these financial woes, PhotoMedex recently entered into a private stock sale to increase funds. While the buyer and details of the sale remain confidential, PhotoMedex succeeded in raising $1.4 million to help combat its falling profits. Additionally, PhotoMedex executives hope the deal will help increase buzz for the dwindling company.
Despite the struggles of PhotoMedex, hair removal remains a viable industry in the United States and abroad. In fact, laser hair removal was the third most commonly performed cosmetic procedure in the US in 2012. Additionally, men and women can choose from a wide array of in-home options, including waxing, cream treatments, and electrolysis. Do your research and determine what form of hair removal is best for you.
If you or someone you know would like more information about laser hair removal, please feel free to schedule a consultation or contact one of our representatives today!