PMGC Holdings Inc. Announces Anticipated Reverse Stock Split

Rhea-AI Summary

PMGC Holdings (NASDAQ: ELAB) has announced a 1-for-3.5 reverse stock split effective September 2, 2025. The split will consolidate every 3.5 shares of common stock into one share, with fractional shares rounded up to one full share.

Following the split, ELAB's outstanding shares will decrease from approximately 2,369,727 to 677,000. While the trading symbol remains unchanged, the stock will receive a new CUSIP number (73017P300). The split will proportionally adjust outstanding stock awards, options, warrant shares, and exercise prices.

Shareholders holding physical certificates can exchange them through VStock Transfer, LLC. The reverse split does not affect the overall value of shareholder equity, only adjusting the number of shares outstanding and share price proportionally.

Positive

• Potential compliance with minimum bid price requirements for continued NASDAQ listing
• Reduced number of shares outstanding may attract institutional investors
• No loss of equity value for shareholders as the split is purely mechanical

Negative

• Reverse splits are often viewed negatively by the market
• May indicate underlying concerns about share price performance
• Transaction costs for shareholders holding physical certificates

Insights

Corporate Finance Specialist

PMGC's 1-for-3.5 reverse split aims to increase share price but doesn't change fundamental company value.

PMGC Holdings is implementing a 1-for-3.5 reverse stock split effective September 2, 2025. This corporate action will consolidate every 3.5 shares into one share, reducing the total outstanding shares from approximately 2,369,727 to about 677,000. The company will maintain its "ELAB" trading symbol but receive a new CUSIP number.

This reverse split is a technical adjustment that doesn't fundamentally change the company's market capitalization or underlying business value. The mathematical reduction in share count creates a proportional increase in share price - for example, a stock trading at $1 pre-split would theoretically trade at $3.50 post-split.

Companies typically implement reverse splits for several strategic reasons: to meet exchange listing requirements (typically $1 minimum share price), attract institutional investors who may have policies against purchasing low-priced stocks, or improve market perception. While PMGC hasn't explicitly stated their motivation, the absence of any mention of compliance issues suggests this may be a strategic move to enhance share price optics.

Notably, shareholders won't need to take action, and those entitled to fractional shares will receive one full share instead - a shareholder-friendly approach compared to paying cash for fractional interests. Outstanding equity awards, options, and warrants will be proportionally adjusted to maintain their economic value.

NEWPORT BEACH, Calif., Aug. 28, 2025 (GLOBE NEWSWIRE) -- PMGC Holdings Inc. (NASDAQ: ELAB) (“PMGC” or the “Company”) today announced that it will effect a 1-for-3.5 reverse stock split (the “Split”) of its issued and outstanding and authorized common stock, par value $0.0001 per share (“Common Stock”). The marketplace effective date of the Split will be September 2, 2025 at 9:30 am EST.

Key Details of the Reverse Stock Split:

• Conversion Ratio: Every 3.5 shares of issued and outstanding Common Stock will be consolidated into one share of Common Stock, and every 3.5 shares of authorized Common Stock will be consolidated into one share of Common Stock, each with no further action required from shareholders.
• Fractional Shares: Shareholders entitled to fractional shares will receive one full share for each fractional portion.
• Updated Stock Identifier: While the trading symbol for the Common Stock will remain “ELAB,” the Common Stock will be designated a new CUSIP number 73017P300.
• Equity Adjustments: Outstanding stock awards, options, and the shares reserved for the equity incentive plan will be adjusted proportionally to reflect the Split.
• Warrant Share and Exercise Price Adjustments: Shares of Common Stock underlying outstanding warrants and the exercise price of the outstanding warrants will be adjusted proportionally to reflect this stock split.
  

Impact on Shareholders:

• Certificate Holders: Shareholders with physical certificates can exchange them, if desired, through VStock Transfer, LLC, the transfer agent of the Company, which will provide detailed instructions.
• Share Value: The reverse split does not impact the overall value of shareholder equity; it only reduces the number of shares outstanding while proportionally adjusting the share price.

Impact on our Common Stock:

The Company anticipates that there will be approximately 677,000 shares of common stock issued and outstanding immediately following the anticipated reverse stock split on September 2, 2025. The Company anticipates that there will be approximately 2,369,727 shares of common stock issued and outstanding immediately prior to the anticipated reverse stock split on September 2, 2025.

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, 2024, filed with the SEC on March 28, 2025, 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

FAQ

What is the reverse stock split ratio for PMGC Holdings (ELAB) and when is it effective?

PMGC Holdings will implement a 1-for-3.5 reverse stock split effective September 2, 2025 at 9:30 am EST.

How many shares will PMGC Holdings (ELAB) have outstanding after the reverse split?

PMGC Holdings will have approximately 677,000 shares outstanding after the reverse split, down from approximately 2,369,727 shares.

What happens to fractional shares in PMGC Holdings' reverse stock split?

Shareholders entitled to fractional shares will receive one full share for each fractional portion.

How does the ELAB reverse stock split affect existing shareholders?

The split does not affect the total value of shareholders' holdings. Every 3.5 shares will be consolidated into one share, with the share price adjusted proportionally. Physical certificate holders can exchange them through VStock Transfer, LLC.

Will PMGC Holdings' stock symbol change after the reverse split?

The trading symbol will remain ELAB, but the stock will receive a new CUSIP number: 73017P300.