The skincare subsidiary of former Elevai Labs Inc. has been acquired by bio-aesthetics company Carmell Corp.
Carmell issued approximately $1.1 million of common stock, as well as $57,000 in cash, as part of the deal, which closed on Jan. 16.
Newport Beach-based Elevai last month underwent a company reorganization, including switching parent companies and changing the company’s name from Elevai Labs to PMGC Holdings Inc.
News of the acquisition comes two years after the Business Journal reported on the company filing plans with the Securities and Exchange Commission for an initial public offering. It raised $6 million by offering 1.5 million shares at $4 apiece (Nasdaq: ELAB), valuing the company at around $87 million.
About 10 months later, the company announced the pricing of a second offering valued at $8 million of common stock.
Avoided Nasdaq Delisting
PMGC, formerly Elevai Labs, nearly faced delisting as a Nasdaq-listed public company last August. It implemented a 1-for-200 reverse stock split of its common stock to meet Nasdaq’s $1 minimum bid-price requirement for continued listing.
Shares in the company opened at a split adjusted $800 in 2023 and have since tumbled down to as low as $1.74. They currently trade at $2.11 with a $6.5 million market cap.
PMGC described the sale of Elevai Skincare Inc. as “eliminating a loss-generating subsidiary.”
For Carmell, the acquisition will expand its bio-aesthetic portfolio, broaden its commercial footprint and improve cash flow, according to Rajiv Shukla, chairman of Carmell.
“This acquisition will integrate one of the newest advances in stem cell derived exosome technology into the Carmell platform, further cementing our status as the home of the best bio-aesthetic skincare science, built by biology just as nature intended,” Shukla said in a statement.
Pittsburgh-based Carmell has fallen about 88% in the past year to 47 cents and a $14.3 million market cap (Nasdaq: CTCX).
The skincare subsidiary focuses on regenerative skincare and developed proprietary exosome technology which uses stem cells to restore damaged skin.
Elevai Skincare in January 2023 received a utility patent for the creation process of its flagship exosome-based skin care products, developed by Elevai co-founder and Chief Executive Jordan Plews.
The Stanford University-trained biochemical engineer previously served as chief science officer at Chico-based biotech aesthetic company FactorFive Skincare.
Company Reorganization
Elevai’s two additional subsidiaries have been renamed PMGC Research Inc. and NorthStrive Biosciences Inc. as a result of the restructuring.
A series of other changes took place affecting the executive lineup of the new parent company.
Last June, Plews resigned as chief executive and president of the parent company.
His resignation was not “the result of any disagreement with the Company or any matter relations to its operations, policies … or practices,” according to Plew’s resignation letter attached in a SEC filing.
Plews, however, will still serve as CEO of the skincare and biosciences subsidiaries.
The board appointed Chief Financial Officer Graydon Bensler as CEO and Braeden Lichti as chairman of the board.
The company, which had 18 employees, also terminated Chief Marketing Officer Brenda Buechler and Chief Commercial Officer Christoph Kraneiss to “streamline the company’s operations” amid the reorganization.
