PMGC Holdings secures $1.48 million in direct offering

NEWPORT BEACH, Calif. - PMGC Holdings Inc. (NASDAQ:ELAB), a diversified holding company with a current market capitalization of $3.7 million, has announced a registered direct offering of its common stock, expected to yield approximately $1.48 million in aggregate gross proceeds. The transaction involves the sale of 294,450 shares, including pre-funded warrants, at $5.04 each, with closing anticipated around March 24, 2025, subject to customary conditions. According to InvestingPro data, the company maintains a strong liquidity position with a current ratio of 3.86, indicating robust short-term financial health.

The offering, priced at-the-market under Nasdaq rules, will bring the total issued and outstanding shares of PMGC to approximately 872,411 post-transaction. Univest Securities, LLC is serving as the sole placement agent for the offering.

This financial move follows the company’s effective shelf registration statement on Form S-3, previously filed and declared by the U.S. Securities and Exchange Commission (SEC) on February 7, 2025. The final prospectus supplement and accompanying prospectus will be available on the SEC’s website.

PMGC Holdings oversees a portfolio of subsidiaries across various industries, including Northstrive Biosciences Inc., PMGC Research Inc., and PMGC Capital LLC, focusing on growth through strategic acquisitions, investments, and development. The company maintains impressive gross profit margins of 71.15% and trades at an attractive Price/Book ratio of 0.41. InvestingPro subscribers have access to 14 additional key insights about PMGC Holdings’ financial performance and outlook.

The press release includes forward-looking statements under the Private Securities Litigation Reform Act of 1995, which are not historical facts but are based on current expectations, beliefs, and assumptions about the company’s future. PMGC Holdings cautions that these statements are subject to risks and uncertainties that could cause actual results to differ materially from anticipated results. This caution appears particularly relevant given the company’s current overall financial health score of "Weak" according to InvestingPro analysis, with the stock showing significant volatility over the past year.

The details provided are based on a press release statement by PMGC Holdings Inc. Investors are encouraged to consult the SEC’s website for further information and to read the company’s filings, including the "Risk Factors" section of its Annual Report for the year ended December 31, 2023, for a more comprehensive understanding of the company’s risks and business outlook.

In other recent news, PMGC Holdings Inc. has executed a modest share repurchase, buying back approximately 70.5 shares from two shareholders at a price of $0.7231 per share, totaling around $52. This buyback was initiated after investors expressed interest in selling their shares back to the company. Additionally, PMGC Holdings has announced a 1-for-7 reverse stock split of its common stock, effective March 10, 2025, to comply with Nasdaq’s minimum bid price requirement and maintain its listing. This reverse stock split will consolidate every seven shares into one, with fractional shares rounded up, resulting in approximately 577,000 shares outstanding.

Furthermore, Northstrive Biosciences Inc., a subsidiary of PMGC Holdings, has scheduled a pre-IND meeting with the FDA to discuss EL-22, a potential obesity treatment. The company aims to file an IND application within 2025 and begin clinical trials. In another development, PMGC Holdings has mutually terminated its License Agreement with INmune Bio, Inc., which involved rights to develop and commercialize EMx technology for cosmetic products. This termination means PMGC will no longer owe fees to INmune Bio and is considering other in-licensing opportunities.

These developments reflect PMGC Holdings’ strategic efforts to manage its capital structure and explore new growth avenues. Investors are advised to review PMGC Holdings’ SEC filings for a comprehensive understanding of the risks and strategic directions involved.

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