ELAB is executing a transformative pivot from pharma to aerospace/defense manufacturing. The $4.8M acquisition adds $4.69M in trailing revenue and positive net income, but the company still carries significant pre-acquisition losses ($7.75M in FY2025) and $1.67M in derivative/convertible debt. Monitor the post-close working capital true-up and integration of A&B's operations. The stock's $8M market cap suggests the market has not yet priced in this transformation.
Price Chart
Executive Summary
PMGC Holdings (ELAB) acquired 100% of A&B Aerospace, a precision CNC machining contractor, for $4.8M in cash ($4.275M at closing plus $225K holdback and $300K estimated closing cash). The acquisition transforms ELAB from a pharmaceutical prep company into an aerospace/defense manufacturer. A&B generated $4.69M trailing revenue and $340K net income, while ELAB had $590K revenue and a $7.75M net loss. The deal was funded via a $7.79M offering to Streeterville Capital completed 23 days prior.
Key Financial Metrics
Key Facts
- PMGC acquired A&B Aerospace for $4.8M cash ($4.275M closing + $225K holdback + $300K estimated cash)
- A&B Aerospace is a precision CNC machining contractor serving aerospace/defense (Honeywell 33%, Boeing 27%, MOOG 13% of revenue)
- A&B generated $4.69M trailing revenue and $340K net income for the twelve months ended Feb 28, 2026
- ELAB had $590K revenue and $7.75M net loss for FY 2025
- Deal funded by $7.79M registered direct offering to Streeterville Capital completed April 20, 2026
- A&B has a $225K accrued wage-and-hour class action settlement (covered by indemnification holdback)
- Sellers include non-compete (3 years, California) and transition services (6 months)
- Pro forma combined revenue ~$5.28M, net loss ~$7.07M (driven by ELAB's pre-acquisition losses)
- Goodwill of $1.36M and intangibles of $1.5M recorded on acquisition
Financial Impact
$4.8M total cash consideration for A&B Aerospace acquisition
Risk Factors
- Integration risk: ELAB has no aerospace/defense operating experience
- Customer concentration: A&B's top 3 customers represent ~73% of revenue (Honeywell, Boeing, MOOG)
- Liquidity risk: $7.79M offering funded the deal, but ELAB had going concern doubts pre-acquisition
- Litigation overhang: $225K wage-and-hour class action settlement pending
- Dilution from the $7.79M offering to Streeterville Capital
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 4 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001213900-26-055405 |
| Document: ea029009801ex99-1.htm | 0001213900-26-055405 |
| Document: ea029009801ex10-1.htm | 0001213900-26-055405 |
| Document: ea029009801ex99-3.htm | 0001213900-26-055405 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 29, 2026 28d ago | Press Release | $3.67 $3.54 | ▼ −3.54% | ▼ −3.34% | $2.58 (−29.70%) |
Sep 18, 2026 5w ago | 8-K | $4.78 $4.42 | ▼ −7.53% | ▼ −9.08% | $2.58 (−46.03%) |
Sep 18, 2026 5w ago | Press Release | $4.78 $4.42 | ▼ −7.53% | ▼ −9.08% | $2.58 (−46.03%) |
Aug 19, 2026 9w ago | Press Release | $0.5603 $0.6100 | ▲ +8.87% | ▲ +9.71% | $2.58 (+360.47%) |
Aug 14, 2026 10w ago | Press Release | $0.9100 $0.8730 | ▼ −4.07% | ▼ −3.59% | $2.58 (+183.52%) |
Jul 29, 2026 12w ago | Press Release | $0.8800 $0.9493 | ▲ +7.88% | ▲ +6.20% | $2.58 (+193.18%) |
Jul 9, 2026 15w ago | 8-K | $1.12 $1.09 | ▼ −2.68% | ▼ −1.91% | $2.58 (+130.36%) |
Jul 1, 2026 16w ago | 8-K | $1.28 $1.18 | ▼ −7.81% | ▼ −7.68% | $2.58 (+101.56%) |
Jun 8, 2026 20w ago | Press Release | $1.59 $1.41 | ▼ −11.32% | ▼ −11.03% | $2.58 (+62.26%) |
Jun 5, 2026 20w ago | 8-K | $1.59 $1.41 | ▼ −11.32% | ▼ −11.03% | $2.58 (+62.26%) |
US Market Status
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