Engaged in advancing innovative solutions for large-scale market applications
OMER, Israel, Oct. 09, 2020 – Medigus Ltd. (NASDAQ:MDGS) (TASE:MDGS), MDGS), a technology company engaged in advanced medical solutions and innovative internet technologies, today announced its entry into e-commerce business by signing a definitive agreement to acquire a controlling interest in Smart Repair Pro, Inc. and Purex, Inc., two data-driven e-commerce companies, operating on the Amazon Marketplace. According to the agreement, Medigus will hold 50.01% of the issued and outstanding share capital of each of the companies, acquired through a combination of a cash investment in the companies, and an acquisition of additional shares from the companies’ current shareholders in consideration for restricted ADSs of Medigus and a cash component. Medigus shall invest $1,250,000 in the Companies, pay $150,000 in cash consideration to the current shareholders and shall issue $500,000 worth of restricted ADSs of Medigus to the current shareholders of such companies, with the value of restricted ADSs to be subject to downward adjustment based on the companies’ 2020 results. In addition, the companies’ current shareholders shall be entitled to additional milestone allotments of up to an aggregate $750,000 in restricted ADSs subject to the companies’ achievement of certain milestones throughout 2021. The closing of the transactions contemplated in the definitive agreements are subject to customary closing conditions.
Liron Carmel, CEO of Medigus, said “Medigus continue to expand its internet activities and strengthen its footprint in the e-commerce world. We believe that the e-commerce field will continue to evolve and wish to be well positioned with leading brands and technologies to facilitate our operations”.
The two companies currently manage three successful brands on the Amazon Marketplace, offering a variety of products. According to initial information provided to Medigus, the companies’ revenues target for 2020 is approximately $3 million with net profit of approximately 35%.
Medigus Ltd. is a technology-based company engaged in advancing innovative solutions for large-scale market applications. To learn more about Medigus’ advanced technology, please visit www.medigus.com.