PMGC Holdings Inc. Announces Warrant Inducement Agreement with Institutional Investors

PMGC Holdings Inc. announces warrant inducement agreement, aiming to raise approximately $1.9 million through new warrant exercises.

Quiver AI Summary

PMGC Holdings Inc., formerly known as Elevai Labs Inc., has entered into an agreement with institutional investors for the exercise of outstanding Series A warrants issued in September 2024. The agreement involves the exercise of warrants for a total of 969,385 shares at an amended price of $2.00 each, generating approximately $1.9 million in gross proceeds. Upon exercising these warrants, the investors will receive new unregistered warrants to purchase the same number of shares at $2.75, contingent upon shareholder approval. The closing of this transaction is expected around January 28, 2025, with Univest Securities acting as the exclusive financial advisor. PMGC has committed to filing a registration statement with the SEC covering resale of the new shares. The company emphasizes that this press release does not constitute an offer to sell or buy any securities.

Potential Positives

• The Company expects to generate approximately $1.9 million in gross proceeds through the exercise of outstanding warrants, which will enhance its financial position.
• New warrants issued to investors will provide future funding opportunities through potential additional capital when exercised.
• The agreement reflects investor confidence and support, indicating a positive outlook on the Company's strategies and future performance.
• The Company is committed to filing a registration statement with the SEC to facilitate the resale of shares, promoting transparency and investor trust.

Potential Negatives

• The agreement to induce the exercise of warrants may indicate the company is struggling to raise capital through traditional means, suggesting financial instability.
• The issuance of new warrants at a higher exercise price could dilute existing shareholders’ equity, leading to potential dissatisfaction among current investors.
• The reliance on institutional investors for financing may raise concerns about the company's need for external support, which could weaken investor confidence.

FAQ

What is the recent announcement by PMGC Holdings Inc.?

PMGC Holdings announced a warrant inducement agreement with institutional investors to exercise Series A warrants for purchasing shares.

How many shares are being purchased in the warrant agreement?

Investors will purchase an aggregate of 969,385 shares of PMGC's common stock under the agreement.

What is the exercise price for the warrants?

The amended exercise price for the warrants is set at $2.00 per share.

Who is the financial advisor for this transaction?

Univest Securities, LLC is acting as the exclusive financial advisor for the transaction.

What will happen to the new warrants after shareholder approval?

The new warrants, exercisable at $2.75 per share, will expire five years after obtaining shareholder approval.

Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.

$ELAB Hedge Fund Activity

We have seen 7 institutional investors add shares of $ELAB stock to their portfolio, and 4 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

• SABBY MANAGEMENT, LLC added 2,541,779 shares (+inf%) to their portfolio in Q3 2024, for an estimated $210,967
• WHITTIER TRUST CO OF NEVADA INC removed 80,666 shares (-100.0%) from their portfolio in Q3 2024, for an estimated $6,695
• GEODE CAPITAL MANAGEMENT, LLC added 45,130 shares (+inf%) to their portfolio in Q3 2024, for an estimated $3,745
• TWO SIGMA SECURITIES, LLC added 43,265 shares (+inf%) to their portfolio in Q3 2024, for an estimated $3,590
• TOWER RESEARCH CAPITAL LLC (TRC) added 39,128 shares (+inf%) to their portfolio in Q3 2024, for an estimated $3,247
• HRT FINANCIAL LP added 35,853 shares (+inf%) to their portfolio in Q3 2024, for an estimated $2,975
• DIVERSIFY ADVISORY SERVICES, LLC removed 25,000 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $57,250

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.

Full Release

NEWPORT BEACH, Calif., Jan. 27, 2025 (GLOBE NEWSWIRE) -- PMGC Holdings Inc. (formerly Elevai Labs Inc.) (the “Company” or “PMGC”) (Nasdaq: ELAB) a diversified holding company today announced it has entered into a warrant inducement agreement with existing institutional investors for the exercise of certain outstanding Series A warrants that the Company issued on September 24, 2024. Pursuant to the warrant inducement agreement, the investors have agreed to exercise the outstanding warrants to purchase an aggregate of 969,385 shares of the Company's common stock at an amended exercise price of $2.00. The gross proceeds from the exercise of the warrants are expected to be approximately $1.9 million, prior to deducting placement agent fees and estimated offering expenses.

The closing of the warrant inducement transactions is expected to occur on or about January 28, 2025, subject to satisfaction of customary closing conditions.

Univest Securities, LLC is acting as the exclusive financial advisor for the transaction.

In consideration for the exercise of the warrants, the Company also agreed to issue to the investors unregistered new warrants to purchase an aggregate of 969,385 shares of the Company's common stock with an exercise price of $2.75 per share (the “New Warrants”). The New Warrants are exercisable upon shareholder approval and will expire five years from the date of shareholder approval. The Company has agreed to file a registration statement within thirty (30) days with the Securities and Exchange Commission (“SEC”) covering the resale of the shares of common stock issuable upon exercise of the New Warrants.

This press release shall not constitute an offer to sell or a 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 other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

About PMGC Holdings Inc.

PMGC Holdings Inc. is a diversified holding company that manages and grows its portfolio through strategic acquisitions, investments, and development across various industries. Currently, our portfolio consists of three wholly owned subsidiaries: Northstrive Biosciences Inc., PMGC Research Inc., and PMGC Capital LLC. We are committed to exploring opportunities in multiple sectors to maximize growth and value. For more information, please visit https://www.pmgcholdings.com.

Forward-Looking Statements

Statements contained in this press release regarding matters that are not historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Words such as “believes,” “expects,” “plans,” “potential,” “would” and “future” or similar expressions such as “look forward” are intended to identify forward-looking statements. Forward-looking statements are made as of the date of this press release and are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy, activities of regulators and future regulations and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results. Therefore, you should not rely on any of these forward-looking statements. These and other risks are described more fully in PMGC Holdings’ filings with the United States Securities and Exchange Commission (“SEC”), including the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on March 29, 2024, and its other documents subsequently filed with or furnished to the SEC. Investors and security holders are urged to read these documents free of charge on the SEC’s web site at www.sec.gov. All forward-looking statements contained in this press release speak only as of the date on which they were made. Except to the extent required by law, the Company undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made.

IR Contact:

IR@pmgcholdings.com

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