PMGC Holdings secures royalty payment plan from Elevai Skincare sale

PMGC Holdings Inc. (NASDAQ: ELAB) announced it has entered into a payment agreement with Longevity Health Holdings, Inc. to structure royalty payments owed from the January 2025 sale of its Elevai Skincare business.

Under the agreement, Longevity has acknowledged a 2025 royalty obligation of $94,937, with interest accruing at the Wall Street Journal Prime Rate plus 1.00% per annum from the original April 2026 due date. Monthly installments of $10,000 will begin October 15, 2026, with all amounts due no later than August 28, 2031.

The payment plan stems from an asset purchase agreement dated December 31, 2024, in which PMGC negotiated a five-year royalty equal to 5% of net sales from the Elevai Skincare product line. The royalty rights were subsequently assigned to PMGC's wholly owned subsidiary, NorthStrive Biosciences Inc., in December 2025.

Key terms of the payment agreement include automatic addition of all future royalty and earnout payments under the same interest-bearing terms, mandatory prepayments equal to 15% of net cash proceeds from qualifying capital raises exceeding $350,000, and joint and several liability shared between Longevity and the buyer of the Elevai Skincare business. The agreement also grants NorthStrive annual audit rights and acceleration rights upon payment default or insolvency.

Longevity's payment obligations are described as absolute and unconditional, without setoff, counterclaim, or deduction. Annual net sales statements are due within five business days of Longevity's filing of its Annual Report on Form 10-K.

PMGC describes itself as a diversified holding company with interests in precision manufacturing, biosciences, and defense technology.

You May Also Be Interested In

• Questcorp Mining to acquire full ownership of North Island Copper Project
• Roth/MKM Starts Atrium Therapeutics (RNA) at Buy
• JPMorgan Downgrades Opmobility SE (OPM:FP) to Neutral