PMGC signs LOI to acquire California-based CNC machining company

NEWPORT BEACH, Calif. - PMGC Holdings Inc. (NASDAQ:ELAB), a micro-cap company with a market value of $2.86 million, announced Monday it has signed a non-binding Letter of Intent to acquire a California-based CNC machining company with over 35 years of operational history. According to InvestingPro data, PMGC maintains a strong liquidity position with a current ratio of 8.97, though the company has been experiencing rapid cash burn.

The target company specializes in precision milling and turning, mold manufacturing, and working with exotic metals such as titanium and Inconel. It holds AS9100D and ISO 9001:2015 certifications and serves customers in aerospace, defense, space, and industrial sectors.

According to the press release statement, the target generated approximately $1.4 million in revenue and $215,000 in adjusted EBITDA in 2024. This potential acquisition comes as PMGC trades at a Price/Book ratio of 0.35, significantly below industry averages. InvestingPro analysis reveals 15 additional key insights about PMGC’s financial position and market performance.

"This acquisition reflects our continued commitment to acquiring specialized, resilient businesses that operate at the highest standards," said Graydon Bensler, Chief Executive Officer of PMGC Holdings Inc.

This marks PMGC’s third pending acquisition since April 2025. The company states it is focusing on acquiring U.S.-based, cash-flow-positive manufacturing businesses with strong fundamentals.

The target company has developed customer relationships through repeat business and referrals despite having no formal sales team or marketing budget, according to the announcement.

PMGC cites recent geopolitical dynamics and supply chain vulnerabilities as factors that may accelerate efforts to rebuild American manufacturing capabilities, potentially benefiting companies with specialized certifications like those held by the acquisition target. This strategic move comes as PMGC’s stock has experienced significant volatility, with a one-year decline of nearly 99.75%. Unlock comprehensive analysis and Fair Value estimates for PMGC and thousands of other stocks with InvestingPro.

The closing of the acquisition remains subject to customary conditions, including completion of due diligence, corporate approvals, and execution of definitive documentation. PMGC noted that closing of the acquisition is not guaranteed.

PMGC Holdings is 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. has announced plans to acquire a U.S.-based electronics contract manufacturing company. The target firm has reported approximately $699,000 in revenue and $173,000 in adjusted EBITDA for 2024. This acquisition is part of PMGC’s ongoing expansion strategy, aligning with national efforts to revitalize domestic manufacturing. Additionally, Northstrive Biosciences, a subsidiary of PMGC, has completed Phase I research on EL-22, a treatment for muscle-wasting conditions, and plans to initiate a Phase 2 trial targeting GLP-1 users. Northstrive has also filed four new patent applications for treatments addressing muscle loss in obesity and promoting muscle growth in animals. In partnership with Yuva Biosciences, Northstrive is exploring new treatments for cardiometabolic conditions using AI technology. Furthermore, PMGC has entered into a secondment agreement with Northstrive Companies Inc., allowing for the temporary assignment of employees to PMGC. These developments highlight PMGC’s strategic moves in the biopharmaceutical and electronics sectors.

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