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NEWPORT BEACH, Calif. - PMGC Holdings Inc. (NASDAQ:ELAB), a micro-cap company with a market capitalization of $2.8 million, announced Tuesday it has entered into a non-binding letter of intent to acquire a U.S.-based CNC machining company that specializes in manufacturing components for aerospace and defense sectors. According to InvestingPro data, PMGC maintains a strong liquidity position with a current ratio of 8.97x, indicating substantial cash reserves relative to short-term obligations.
The target company, established in 1948, holds AS9100 and ISO 9001 certifications and operates a facility with 5-axis CNC machines and advanced systems. It reported approximately $4.5 million in revenue and $500,000 in adjusted EBITDA for 2024. This potential acquisition comes as PMGC faces challenges, with InvestingPro analysis showing the company’s stock has declined 87% year-to-date and currently maintains a "Weak" overall financial health score of 1.6 out of 5.
The acquisition target serves commercial and defense aerospace customers with production capabilities for components requiring ultra-tight tolerances, according to the press release statement.
"This company exemplifies the kind of certified, mission-critical supplier we aim to partner with," said Graydon Bensler, Chief Executive Officer of PMGC.
The potential acquisition aligns with PMGC’s strategy to acquire specialized U.S. manufacturers in sectors where certifications and technical expertise are valued. The aerospace sector is experiencing increased demand for certified domestic suppliers amid pushes toward onshoring and supply chain resiliency.
The transaction remains subject to several conditions including completion of due diligence, corporate approvals, and execution of definitive documentation. PMGC noted in its announcement that there is no assurance the acquisition will be completed.
PMGC Holdings operates as a diversified holding company with three wholly owned subsidiaries: Northstrive Biosciences Inc., PMGC Research Inc., and PMGC Capital LLC.
In other recent news, PMGC Holdings Inc. announced its intent to acquire two companies, marking significant steps in its merger and acquisition strategy. The company signed a non-binding Letter of Intent to purchase a California-based CNC machining company, which generated approximately $1.4 million in revenue and $215,000 in adjusted EBITDA in 2024. Additionally, PMGC plans to acquire a U.S.-based electronics contract manufacturer with reported revenue of approximately $699,000 and $173,000 in adjusted EBITDA for the same year. Both acquisitions are pending customary conditions, including due diligence and corporate approvals.
In related developments, Northstrive Biosciences Inc., a subsidiary of PMGC Holdings, completed Phase I research for its oral treatment EL-22, targeting muscle-wasting conditions. The company also filed four new patent applications for obesity treatments, including the use of EL-22 and EL-32 in various therapeutic contexts. Furthermore, PMGC Holdings entered into a secondment agreement with Northstrive Companies Inc., allowing temporary employee assignments to PMGC. These strategic moves reflect PMGC’s ongoing efforts to expand its portfolio and strengthen its position in the manufacturing and biopharmaceutical sectors.
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