PMGC Holdings Inc. (Nasdaq: ELAB) has terminated a non-binding letter of intent to acquire a 76% controlling interest in an Arizona-based precision machining and contract manufacturing company, citing unfavorable historical financial results uncovered during audit-stage due diligence.

The LOI, announced June 1, 2026, had contemplated an all-cash acquisition based on unaudited figures showing the target generated approximately $5.46 million in revenue and approximately $1.05 million in EBITDA for fiscal year 2025. After completing a GAAP audit process, PMGC determined the target's historical financial profile was less favorable than initially anticipated and that the total cost of the transaction no longer met its return criteria. The company said it did not incur a breakup fee or termination penalty.

The Newport Beach, California-based holding company said it is continuing to evaluate multiple acquisition opportunities through its dedicated M&A team, including bolt-on acquisitions, standalone businesses, and strategic carve-outs.

In a statement based on a press release, the company also disclosed ongoing capital investment in its existing aerospace and defense manufacturing portfolio. Equipment purchases to date include a 5-axis machining center, a CNC lathe with Y-axis and live tooling, and a Swiss-type CNC lathe with bar feeder. The Swiss-type machine is described as enabling lights-out manufacturing to reduce operator dependency.

PMGC said it is also evaluating robotics and automation technologies, including robotic machine tending, automated material handling, inspection systems, and production monitoring.

During 2026, the company merged two of its precision manufacturing businesses to consolidate functions and share resources. PMGC said it intends to evaluate similar integration opportunities across its broader portfolio.