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NEWPORT BEACH, Calif. - PMGC Holdings Inc. (Nasdaq: ELAB), a diversified public holding company with a market capitalization of approximately $3 million, has announced its intent to acquire an established U.S.-based electronics contract manufacturing company. According to InvestingPro data, the company currently maintains a weak financial health score, suggesting this acquisition could be crucial for its growth strategy. The target firm, which has been operational for over 40 years, specializes in high-precision electrical and mechanical assembly, including printed circuit board manufacturing for commercial and industrial clients.
The non-binding Letter of Intent (LOI) outlines PMGC’s plan to incorporate the target company, which reported approximately $699,000 in revenue and $173,000 in adjusted EBITDA for the year 2024. This move represents PMGC’s second pending acquisition since April and is part of its ongoing merger and acquisition (M&A) strategy, signaling further expansion efforts anticipated within the year.
PMGC’s CEO, Graydon Bensler, expressed enthusiasm about the acquisition, highlighting the target company’s long-standing customer relationships and strong operational control. Bensler stated, "This company has built a legacy of excellence, and we believe there is a compelling opportunity to scale operations and enhance customer acquisition through strategic support and platform integration."
The acquisition aligns with a broader national initiative to revitalize domestic manufacturing, bolstered by federal support measures like the CHIPS and Science Act. PMGC aims to position itself at the forefront of this reshoring trend in the electronics manufacturing services (EMS) sector.
Completion of the acquisition is subject to customary conditions including due diligence, necessary corporate approvals, and the execution of definitive documentation. There is no guarantee that the acquisition will be finalized. Trading at 0.37 times book value, PMGC appears undervalued based on traditional metrics. Discover more insights and 13 additional ProTips with InvestingPro’s comprehensive analysis tools.
PMGC Holdings Inc. manages a portfolio of subsidiaries across various industries and remains committed to pursuing growth opportunities in multiple sectors. This acquisition is based on a press release statement and is subject to change according to the fulfillment of the outlined conditions and regulatory approvals.
In other recent news, PMGC Holdings Inc. announced a registered direct offering expected to generate approximately $1.48 million in gross proceeds. This transaction involves the sale of 294,450 shares at $5.04 each, with Univest Securities, LLC acting as the sole placement agent. Meanwhile, Northstrive Biosciences Inc., a subsidiary of PMGC Holdings, has completed Phase I research on its oral treatment EL-22 for muscle-wasting conditions. The company plans to begin a Phase 2 trial targeting users of GLP-1 receptor agonists. Additionally, Northstrive Biosciences filed four new patent applications related to muscle loss treatments in obese patients and muscle growth in animals, expanding its engineered probiotic platform. Northstrive also entered a partnership with Yuva Biosciences to develop treatments for cardiometabolic conditions using AI technology. In another strategic move, PMGC Holdings signed an employee secondment deal with Northstrive Companies Inc., allowing for workforce flexibility. These developments reflect PMGC Holdings’ ongoing efforts in research, strategic partnerships, and financial growth.
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