PITTSBURGH - Carmell Corporation (NASDAQ:CTCX), a company specializing in skin and hair health products with a current market capitalization of $7.04 million, has announced the acquisition of assets from PMGC Holdings Inc.'s subsidiary, Elevai Skincare Inc. The deal, which includes Elevai's skincare and haircare business, involves a mix of stock, cash, and contingent earnout consideration.
Carmell will issue approximately $1.1 million in common stock and pay about $57,000 in cash for specified inventory at closing. Additionally, the agreement includes a 5% annual earnout on net sales from Elevai's existing products for five years and a one-time milestone payment of $500,000 if Elevai's hair and scalp products reach $500,000 in net revenue within 24 months post-closing. According to InvestingPro data, Carmell maintains impressive gross profit margins of 71.15% and a healthy current ratio of 3.86, indicating strong operational efficiency and solid short-term liquidity.
The acquisition, expected to bolster Carmell's product offerings, includes Elevai's product portfolio with a trailing twelve-month revenue of approximately $2.5 million, the commercial and product development team, finished and work-in-process inventory valued at around $1.0 million, and accounts receivable of approximately $0.03 million.
Rajiv Shukla, Chairman of Carmell, stated that the acquisition integrates advanced stem cell derived exosome technology into Carmell's platform, enhancing its position in bio-aesthetic skincare science. The company has demonstrated strong revenue growth of 112.17% over the last twelve months, though InvestingPro analysis indicates the stock is currently trading below its Fair Value. Subscribers can access 13 additional ProTips and comprehensive financial metrics to better evaluate this growth opportunity.
Elevai has been recognized for developing science-backed skin and hair care applications, utilizing stem cell exosome technology for the physician-dispensed market. Carmell, on the other hand, leverages its proprietary Secretome™ technology to support skin and hair health, which includes growth factors and proteins extracted from human platelets.
The transaction is subject to standard closing conditions, and there is no guarantee of the acquisition's completion within a set timeframe or at all. The company has cautioned that forward-looking statements are subject to risks and uncertainties, and actual results may differ materially.
This news is based on a press release statement and does not constitute an offer to sell securities or a solicitation of an offer to buy. For detailed financial analysis and real-time updates on Carmell's performance, visit InvestingPro for exclusive insights and advanced metrics.
In other recent news, PMGC Holdings Inc. reported a series of significant developments. The company announced the resignation of director, Jordan R. Plews, effective immediately. In addition, PMGC Holdings completed its reincorporation from Delaware to Nevada. The company also appointed HTL International, LLC as its new independent registered public accounting firm, replacing TPS Thayer, LLC.
PMGC Holdings' subsidiary, Elevai Biosciences, is preparing for a pre-Investigational New Drug meeting with the U.S. Food and Drug Administration for its novel obesity treatment, EL-22. The company also implemented a 1-for-200 reverse stock split and adjusted its shareholder meeting quorum from a majority to a third of the voting power of outstanding shares.
PMGC Holdings has signed a Master Services Agreement with KCRN Research, Inc. to support the development of EL-22 and acquired exclusive licensing rights for two novel drug candidates from South Korean company MOA Life Plus Co., Ltd. These notable developments indicate a proactive approach to the company's business operations.
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