PMGC Holdings announces reverse stock split

NEWPORT BEACH, Calif. - PMGC Holdings Inc. (NASDAQ: ELAB), a Nevada-based corporation, has declared a 1-for-7 reverse stock split of its common stock, set to take effect at midnight Eastern time on March 10, 2025. The move comes as the company’s stock has declined 99.16% over the past year, currently trading at $1.23. This strategic decision aims to ensure the company’s compliance with Nasdaq’s minimum bid price requirement and maintain its listing on The Nasdaq Capital Market. According to InvestingPro analysis, ELAB’s current market capitalization stands at $3.78 million, with the stock currently appearing undervalued based on Fair Value estimates.

The reverse stock split will convert every seven shares of the existing common stock into one share. Shareholders who would receive fractional shares will be rounded up to one full share. Following the split, it is expected that around 577,000 shares of common stock will be issued and outstanding. The stock will retain its trading symbol ’ELAB,’ but will be identified by a new CUSIP number, 73017P201. Despite recent price challenges, InvestingPro data shows the company maintains strong gross profit margins of 71.15% and a healthy current ratio of 3.86, indicating solid short-term liquidity.

In accordance with the recent amendments approved by the U.S. Securities and Exchange Commission on January 17, 2025, PMGC is undertaking this action to comply with updated Nasdaq rules. These include the removal of a stay period after a second 180-day compliance period, limitations on reverse split allowances, and accelerated delisting for stocks trading below $0.10 for 10 consecutive business days.

The adjustments will be reflected automatically for shareholders holding shares through a broker or in street name. Those with physical stock certificates can exchange them through the company’s transfer agent, VStock Transfer, LLC, which will provide detailed instructions. The reverse split is designed to be equity neutral, merely reducing the number of shares outstanding while proportionally adjusting the share price.

PMGC has emphasized that the reverse stock split is a critical step in maintaining its Nasdaq listing, which the company believes enhances visibility, strengthens investor confidence, and positions it for future growth. However, there is no assurance that the company will meet the minimum bid price requirement. InvestingPro analysis reveals several additional insights about ELAB’s financial health and future prospects, with 14 more exclusive ProTips available to subscribers, helping investors make more informed decisions about the company’s outlook.

This change does not necessitate immediate action from shareholders, and the overall value of shareholder equity should remain unaffected. The company has stated that no shareholder approval is required for the split under Nevada law, as the total number of authorized shares will also decrease in the same 1-for-7 ratio.

The information presented in this article is based on a press release statement from PMGC Holdings Inc.

In other recent news, PMGC Holdings Inc. has reported several notable developments. The company has successfully completed transactions under a warrant inducement agreement, raising gross proceeds of $1.94 million, as detailed in a recent SEC filing. Additionally, PMGC Holdings has entered into an agreement with institutional investors to exercise Series A warrants, generating nearly $1.9 million in gross proceeds. Univest Securities, LLC served as the financial advisor for these transactions. In a strategic move, PMGC Holdings has mutually terminated a License Agreement with INmune Bio, Inc., which previously granted rights to develop certain biotechnology assets. The company is now exploring other in-licensing opportunities with INmune Bio. Furthermore, PMGC Holdings has announced compliance with Nasdaq’s minimum bid price requirement following a reverse stock split. The company also reported leadership changes within its subsidiaries, with Graydon Bensler and Braeden Lichti assuming key roles. These developments highlight PMGC Holdings’ ongoing efforts to adapt and align its strategic direction.

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