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NEWPORT BEACH, Calif. - PMGC Holdings Inc. (NASDAQ:ELAB), a micro-cap company with a market capitalization of $3.05 million, announced Wednesday it has terminated its previously announced non-binding letter of intent dated June 9 to acquire a U.S.-based electronics manufacturing company. According to InvestingPro data, the company maintains a strong liquidity position with a current ratio of 8.97, though its overall financial health score indicates challenges ahead.
The diversified public holding company has decided to narrow its merger and acquisition focus toward CNC machine shops serving the aerospace, defense, and industrial sectors, according to a press release statement. This strategic pivot comes as the company faces headwinds, with InvestingPro analysis showing negative EBITDA of $3.88 million in the last twelve months.
The company indicated this strategic shift better aligns with its long-term growth strategy and capital allocation objectives, allowing it to build a specialized portfolio that could benefit from sector-specific demand and margin expansion.
PMGC continues to pursue its June 24 non-binding letter of intent to acquire an AS9100 and ISO 9001-certified CNC precision machining company in the United States. The target company, which specializes in aerospace and defense components, reportedly generated approximately $4.5 million in revenue and $500,000 in adjusted EBITDA in 2024.
The U.S. machine shop services market was estimated at approximately $44.7 billion in 2024, with nearly one-third of the industry concentrated in California, Texas, Ohio, and Michigan. The global machining market is projected to expand from $402.6 billion in 2024 to $755.7 billion by 2034.
New U.S. metalworking machinery orders increased 32.6% from February to March 2025, reaching $515.8 million, the highest monthly value since early 2023, according to the company’s statement.
The pending CNC manufacturing acquisition remains subject to due diligence and customary closing conditions. Trading at a price-to-book ratio of 0.37, PMGC Holdings presents an interesting value proposition despite its challenges. Subscribers to InvestingPro can access 11 additional investment tips and comprehensive financial metrics to better evaluate this potential turnaround story.
In other recent news, PMGC Holdings Inc. announced its intent to acquire a U.S.-based electronics contract manufacturing company, marking its second pending acquisition since April. This targeted firm, which has been in operation for over 40 years, reported approximately $699,000 in revenue and $173,000 in adjusted EBITDA for 2024. Additionally, PMGC has signed a non-binding letter of intent to acquire a CNC machining company specializing in aerospace and defense components, with reported revenues of $4.5 million and $500,000 in adjusted EBITDA for the same year.
PMGC Holdings also plans to acquire a California-based CNC machining company with over 35 years of operational history, known for working with exotic metals and serving sectors such as aerospace and defense. In another development, Northstrive Biosciences, a subsidiary of PMGC Holdings, completed Phase I research on its oral treatment EL-22, aimed at muscle-wasting conditions. The study explored the treatment’s mechanism of action and potential benefits for conditions like age-related sarcopenia.
Furthermore, PMGC Holdings has entered into a secondment agreement with Northstrive Companies Inc., allowing the temporary assignment of certain employees to PMGC Holdings. These recent developments are part of PMGC’s ongoing strategy to expand its operations and capabilities.
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