Elevai Labs has withdrawn its stock exchange offer due to DTC logistical issues, prioritizing Nasdaq compliance.
Quiver AI Summary
Elevai Labs, Inc. has announced the withdrawal of its offer to exchange up to 15 million shares of its common stock for an equal number of newly issued Series B Preferred Stock due to logistical challenges from the Depositary Trust Company (DTC), which prevented the acceptance of common stock tenders. As a result, no shares will be exchanged, and all previously tendered shares will be returned to their holders. The company aimed to complete the offer before a planned reverse stock split, but delays stemming from amendments in response to SEC comments necessitated the withdrawal to focus on complying with Nasdaq's listing requirements. Elevai Labs will consider launching a new exchange offer in the future, though no details or assurances are currently available regarding this potential move.
Potential Positives
- The decision to withdraw the exchange offer allows Elevai to prioritize regaining compliance with Nasdaq's listing requirements, which is crucial for maintaining investor confidence and market presence.
- No shares will be exchanged in the Offer, ensuring that shareholders who tendered their shares will have them promptly returned, thus avoiding potential losses or confusion.
- The press release highlights Elevai's commitment to regulatory compliance and transparency regarding its financial operations and intentions to engage with SEC comments.
Potential Negatives
- The withdrawal of the exchange offer could indicate internal logistical challenges and reliance on third-party services like the DTC, which may undermine investor confidence.
- The failure to complete the offer, initially expected prior to a planned reverse stock split, raises concerns about the Company's ability to meet its strategic financial goals.
- The lack of assurance regarding a potential new exchange offer may create uncertainty among investors regarding the future handling of the Company's stock.
FAQ
What is the recent announcement made by Elevai Labs?
Elevai Labs has withdrawn its offer to exchange Common Stock for Series B Preferred Stock due to logistical issues with DTC.
Why was the stock exchange offer withdrawn?
The offer was withdrawn because DTC could not accept tenders of Common Stock, preventing the settlement of the exchange.
What happens to the shares that were tendered?
All shares previously tendered and not withdrawn will be promptly returned to the holders.
Will Elevai Labs consider a new exchange offer in the future?
The Company will assess whether to start a new exchange offer, but no assurance can be given regarding its proceeding.
What is the focus of Elevai Labs, Inc.?
Elevai Labs specializes in medical aesthetics and biopharmaceutical drug development targeting skin aesthetics and metabolic health treatments.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
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Full Release
NEWPORT BEACH, Calif., Nov. 22, 2024 (GLOBE NEWSWIRE) -- Elevai Labs, Inc. (NASDAQ: ELAB) ("Elevai" or the "Company"), a leader in medical aesthetics, announced today that it is has withdrawn the previously announced offer (the "Offer") to holders of the Company's outstanding Common Stock (the "Common Stock"), to exchange up to 15,000,000 shares of Common Stock for up to 15,000,000 shares of the Company's newly issued Series B Preferred Stock ("Series B Preferred Stock"), as a result of notice from the Depositary Trust Company ("DTC") that due to logistical issues, DTC would not be able to accept the tenders of Common Stock. As a result of this withdrawal, no shares will be exchanged in the Offer and all shares previously tendered and not withdrawn will be promptly returned to tendering holders. The Company had intended to complete the Offer prior to a planned reverse stock split; however, unforeseen circumstances, including amending the offering materials in response to Securities and Exchange Commission ("SEC") comments, caused delays. As a result, the Company has withdrawn the Offer to prioritize regaining compliance with Nasdaq's listing requirements.
The Company's obligation to exchange shares pursuant to the Offer was subject to a condition that specified the Series B Preferred Stock shall be eligible for deposit with the DTC. As shares of Common Stock tendered could not be accepted by the DTC and exchanged for Series B Preferred Stock, the Offer could not be settled.
The Company will assess whether to commence a new exchange offer, though there can be no assurance that the Company will proceed with a new exchange offer or as to the terms thereof.
About Elevai Labs, Inc.
Elevai Labs Inc. (NASDAQ: ELAB) specializes in medical aesthetics and biopharmaceutical drug development, focusing on innovations for skin aesthetics and treatments tied to obesity and metabolic health. The Company operates a diverse portfolio of three wholly owned subsidiaries across the medical aesthetics and biopharmaceutical sectors, Elevai Skincare Inc., Elevai Biosciences Inc., and Elevai Research Inc. For more information please visit
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Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as "believes," "plans," "anticipates," "projects," "estimates," "expects," "intends," "strategy," "future," "opportunity," "may," "will," "should," "could," "potential," or similar expressions. Statements that are not historical facts are forward-looking statements. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update any of them publicly in light of new information or future events. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors. More information, including potential risk factors, that could affect the Company's business and financial results are included in the Company's filings with the U.S. Securities and Exchange Commission, including, but not limited to, the Company's Forms 10-K, 10-Q and 8-K. All filings are available at
www.sec.gov
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IR Contact:
IR@ElevaiLabs.com
