PMGC Holdings secures $1.67 million from warrant exercise agreement

NEWPORT BEACH, Calif. - PMGC Holdings Inc. (NASDAQ:ELAB), a company currently showing signs of rapid cash burn according to InvestingPro data, announced Friday it has entered into a warrant inducement agreement with existing institutional investors that is expected to generate approximately $1.67 million in gross proceeds. The company’s financial health score currently stands at a concerning 1.61 out of 10, indicating significant challenges ahead.

The agreement involves the exercise of previously issued warrants to purchase 827,900 shares of the company’s common stock at an amended exercise price of $2.015 per share, according to a press release statement. This comes as the stock has experienced a dramatic decline, with InvestingPro data showing a 99% drop in share price over the past year.

As part of the transaction, PMGC will issue new unregistered warrants to the investors to purchase an additional 827,900 shares at an exercise price of $1.89 per share. The company has committed to file a registration statement with the Securities and Exchange Commission within 30 days covering the resale of shares issuable upon exercise of these new warrants.

Univest Securities, LLC is serving as the exclusive financial advisor for the transaction, which is expected to close on or about August 25, subject to customary closing conditions.

PMGC Holdings, which describes itself as a diversified holding company that manages a portfolio through strategic acquisitions and investments across various industries, originally issued the warrants being exercised on January 27, 2025.

The gross proceeds figure of $1.67 million is before deduction of placement agent fees and estimated offering expenses associated with the transaction.

In other recent news, PMGC Holdings Inc. has made several strategic moves concerning acquisitions. The company announced an amendment to its consulting agreements, introducing acquisition-based compensation provisions for its Chairman and CEO. This update allows for fully vested awards in restricted stock units, restricted stock, or cash upon completing any acquisition by PMGC Holdings or its subsidiaries. PMGC Holdings has also terminated its plans to acquire a U.S.-based electronics manufacturing company, shifting its focus towards CNC machine shops that serve the aerospace, defense, and industrial sectors.

Additionally, PMGC has signed a non-binding letter of intent to acquire a U.S.-based CNC machining company specializing in aerospace and defense components, with reported revenues of $4.5 million and adjusted EBITDA of $500,000 for 2024. Another letter of intent was signed to acquire a California-based CNC machining company with over 35 years of history, known for its work with exotic metals. Furthermore, PMGC expressed its intent to acquire a U.S.-based electronics manufacturer specializing in high-precision assembly, with 2024 revenues of approximately $699,000 and adjusted EBITDA of $173,000. These developments highlight PMGC Holdings’ ongoing efforts in mergers and acquisitions.

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