Elevai Labs Inc. is looking to take its stem cell technology public.
The Newport Beach-based regenerative skincare company filed plans with the Securities and Exchange Commission for an initial public offering on Sept. 28.
The 3-year-old company plans to list its common stock under the symbol “ELAB” on the Nasdaq Stock Market.
Elevai is looking to raise upward of $6 million in proceeds from the micro-IPO, offering 1.5 million shares at an anticipated price range of $4 to $6 per share.
It will use the money raised from the IPO to expand into new markets, regulatory filings indicate.
The offering, which values the company around $87 million, is being underwritten by Univest Securities.
Other smaller IPOs taking place in the past year in Orange County include Buena Park-based ramen restaurant chain Yoshiharu Global Co. (Nasdaq: YOSH) and Brea-based coffee roaster and retailer Reborn Coffee Inc. (Nasdaq: REBN).
Both currently count market capitalizations under $10 million.
Losses
Elevai’s filings with the SEC indicate the IPO plans come at a challenging financial time for the company.
Revenue for the six-month period ended June 30 grew to $459,350, up from $195,257 in 2022, while its net loss also grew to $2.4 million from $648,526 from the prior year.
Elevai additionally reported about $601,000 in cash as of June 30, down from $1.2 million as of Dec. 31, as well as an accumulated deficit of $5 million as of June 30.
Elevai’s accountants have noted going concern issues for the company, in the event the firm isn’t successful in raising additional funds for its operations.
Proprietary Technology
Elevai co-founder and CEO Jordan Plews developed the process used to produce the company’s proprietary Elevai Exosome technology, which aims to restore damaged skin using stem cells.
The Stanford University-trained biochemical engineer previously served as chief science officer at Chico-based biotech aesthetic company FactorFive Skincare.
Still patent-pending, Elevai’s stem-cell derived exosomes are the “powerhouse ingredient in all Elevai products” that promotes the skin’s natural healing process, the company said.
Elevai Exosomes are used in the company’s initial product line, the Elevai Post Treatment E-Series, that launched in 2021.
It is the first topical exosome product specifically designed to support skin health before and after a procedure.
The company was recognized for its innovative technology as a finalist at Octane’s High Tech Awards in the Best Consumer Technology category on Sept. 21.
2024 Plans
The company said it plans to expand its e-commerce and product offerings while continuing to forge international distribution agreements.
Elevai has already looked abroad, having recently announced international distributor partnerships with companies in Vietnam, Kuwait and the Philippines.
Most recently, Elevai announced a partnership with Dmark Multisales Corp., a marketing and distribution company in the Philippines, to become the official distributor of Elevai’s exosome products in the Philippine market.
The partnership is “further expanding [Elevai’s] footprint in Southeast Asia,” Chris Kraneiss, chief commercial officer at Elevai said in a statement.
Based on this growth, Elevai said it hopes to prepare for the launch of a pipeline product by early next year.
The U.S. skincare market is expected to reach $22.7 billion by 2025, according to the filing.
