Elevai Labs prices public offering at $8 million

NEWPORT BEACH, Calif. - Elevai Labs, Inc. (NASDAQ: ELAB), a company specializing in medical aesthetics and biopharmaceuticals, has announced the pricing of its public offering, expecting to raise approximately $8 million before fees and expenses. The offering includes 28,571,425 shares of common stock or pre-funded warrants and accompanying Series A and Series B Warrants. The purchase price for each share and warrant is $0.28, with the pre-funded warrants being slightly less.

The Series A Warrants will be exercisable following the approval by Elevai's stockholders, with a five-year expiration from the initial exercise date. Series B Warrants will also be exercisable post-stockholder approval but will expire two and a half years from the exercise date. Both Series A and B Warrants have an exercise price of $0.38 per share, with the Series B Warrants also offering an alternative cashless exercise option for three shares of common stock.

Elevai intends to use the net proceeds for general corporate purposes, including working capital and investments. The offering is slated to close around September 24, 2024, subject to customary closing conditions. Univest Securities, LLC is the sole placement agent for the offering.

The securities are being offered under a registration statement previously filed with and declared effective by the SEC. Elevai cautions that this press release does not constitute an offer to sell or a solicitation of an offer to buy the securities in any state or jurisdiction where such offer, solicitation, or sale would be unlawful before registration or qualification under the securities laws of any such state or jurisdiction.

Investors can obtain copies of the final prospectus relating to the offering from Univest Securities, LLC when available. This information is based on a press release statement from Elevai Labs, Inc.

In other recent news, Elevai Labs has released findings suggesting its exosome-based products may enhance the effects of laser therapy in treating melasma. The company is also facing potential delisting from Nasdaq due to compliance issues, but is actively pursuing an appeal process. Elevai Labs has additionally reported promising results from a hair restoration study conducted in partnership with the National Hair Loss Medical Aesthetics.

The company has filed two patents for new hair and scalp care technology in collaboration with Yuva Biosciences. Furthermore, Elevai Labs has reported positive results from a skincare study using its product, Elevai enfinity™, indicating significant improvement in various skin appearance metrics.

On the corporate side, Elevai Labs has modified its license agreement with INmune Bio Inc., secured a $200,000 unsecured credit line from NorthStrive Fund II LLP, and announced the formation of two wholly owned subsidiaries. The company has acquired exclusive licensing rights for two novel drug candidates from South Korean company MOA Life Plus Co., Ltd., and entered into an exclusive distribution agreement with ILIA International Ltd. for its exosome-based skincare products in Taiwan. These are recent developments from Elevai Labs.

InvestingPro Insights

Elevai Labs, Inc. (NASDAQ: ELAB), amidst its public offering, presents a mixed financial picture according to recent data and analysis from InvestingPro. The company's gross profit margin impresses, standing at 69.25% for the last twelve months as of Q2 2024. This indicates that Elevai has been effective in maintaining a high level of profitability relative to its sales.

However, the company's aggressive growth strategy seems to be taking a toll on its liquidity, as it's quickly burning through cash, with an operating income margin of -195.46% for the same period. This, combined with a significant stock price decline of 91.76% over the last year, signals potential concerns for investors. It's worth noting that the stock generally trades with high price volatility, which could present both risks and opportunities for traders and investors alike.

InvestingPro Tips suggest that while Elevai operates with a moderate level of debt, its valuation implies a poor free cash flow yield, and it has not been profitable over the last twelve months. For those interested in a deeper dive, there are additional insights available on InvestingPro, including more tips that could help investors make a more informed decision regarding their interest in Elevai's stock.

With a market capitalization of $5.83 million and a current share price at the previous close of $0.28, the company's financials and stock performance are critical for potential investors to consider. Elevai does not pay a dividend to shareholders, which may influence the investment strategy for those seeking regular income. The InvestingPro Fair Value estimate for ELAB is $0.43, suggesting potential undervaluation at the current trading price.

For a comprehensive understanding of Elevai's stock performance and financial health, prospective investors are encouraged to explore the additional 10 InvestingPro Tips available, which provide a more granular analysis of the company's financial metrics and market position.

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