Business
PMGC Holdings Inc. Announces Closing of Elevai Skincare Divestiture
Strategic Divestment Reduces Cash Burn and Enhances Operational Efficiency NEWPORT BEACH, Calif., Jan. 16, 2025 (GLOBE NEWSWIRE) -- PMGC Holdings Inc.
About this update from Pmgc Holdings Inc.
[{"type":"text","content":"Strategic Divestment Reduces Cash Burn and Enhances Operational Efficiency\nNEWPORT BEACH, Calif., Jan. 16, 2025 (GLOBE NEWSWIRE) -- PMGC Holdings Inc. (formerly Elevai Labs Inc.) (the “Company” or “PMGC”) (Nasdaq: ELAB) a diversified holding company today announced the closing of the previously announced divestiture of its 100% wholly owned subsidiary Elevai Skincare Inc. (“Elevai”) pursuant to a definitive purchase agreement with Carmell Corporation (“Carmell”) (the “Divestiture”) and reaffirms its commitment to accelerating shareholder value creation and market leadership following the sale of its skincare subsidiary, Elevai Skincare. This strategic Divestiture marks a significant milestone in PMGC’s journey as a diversified holding company. At the closing of the Divestiture (the “Closing”), the purchase consideration paid to PMGC consisted of the following: Approximately $1.1 million of Carmell common stock at a price of $0.8488 per share as follows: 1,149,226 shares of Carmell common stock at Closing, plus;117,814 shares of Carmell common stock held back by Carmell to secure indemnification obligations of PMGC and Elevai for 12 months after Closing; Approximately $57,000 in cash to be paid by Carmell upon the sale of specified inventory existing as of the Closing; andCarmell’s assumption of contractual liabilities and trade payables of Elevai at the Closing. Additional post-Closing earnout consideration of: 5% of net sales from Elevai’s existing products paid annually during the 5-year period following the Closing, andOne-time milestone payment of $500,000 if Elevai’s hair and scalp products achieve $500,000 in net revenue within 24 months following the Closing. The sale was executed to maximize immediate financial benefit while securing future upside through structured royalties and milestone payments. It has notably strengthened PMGC’s balance sheet, reduced operational losses, and paved the way for new opportunities that align with the company's long-term vision. Following the Closing, the total number of PMGC common stock outstanding was approximately 3.07 million. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale woul...