PMGC Holdings Inc. to implement 1-for-3.5 reverse stock split ahead of September 2, 2025
PMGC Holdings Inc. has announced that it will enact a 1-for-3.5 reverse stock split of its common stock, effective September 2, 2025 at 9:30 a.m. EST. Under the split, every 3.5 shares of issued and outstanding common stock will be consolidated into one share, and the same consolidation applies to authorized shares. No action is required from shareholders.
Key details include:
– Fractional shares: Shareholders entitled to fractional shares will receive one full share for each fractional portion.
– Trading identifier: The stock will continue trading under the symbol ELAB, with a new CUSIP number of 73017P300.
– Equity adjustments: Outstanding stock awards, options, and shares reserved for the equity incentive plan will be adjusted proportionally.
– Warrants: The number of shares underlying outstanding warrants and the exercise price of those warrants will be adjusted proportionally.
Impact on shareholders and certificates:
– Certificate holders who hold physical certificates can exchange them through VStock Transfer, LLC, the company’s transfer agent, which will provide detailed instructions.
– The reverse split does not change the overall value of shareholders’ equity; it reduces the number of shares outstanding while adjusting the price accordingly.
Share count expectations:
– The company anticipates approximately 677,000 shares of common stock outstanding immediately after the split.
– There are expected to be about 2,369,727 shares outstanding immediately prior to the split.
Forward-looking statements:
– The company cautions that forward-looking statements are not guarantees and involve risks and uncertainties. These statements reflect management’s beliefs and assumptions as of the date of the release and are subject to change. Investors are advised to review PMGC Holdings’ SEC filings, including the annual report on Form 10-K, for risk factors and additional information.
Context and potential implications:
– While the release does not provide a stated rationale, reverse stock splits are commonly used to manage share price levels or assist with listing requirements. PMGC’s action aims to streamline capitalization and maintain liquidity without altering the total equity value.
– Investors should monitor subsequent communications from the company and any updates to the post-split share price and liquidity dynamics, as well as any changes to warrants and incentive-plan awards.
Additional comments:
– This move may help PMGC present a more conventional price level and potentially improve market perception, though it does not change the underlying value of the company’s equity. Shareholders should consult the transfer agent and review the company’s SEC filings for full details and any risks associated with the split.