Technology-based Company.

Engaged in advancing innovative solutions for large-scale market applications

Medigus Ltd. Signs Non-binding LOI

OMER, Israel, July 19, 2021 – Medigus Ltd. (Nasdaq: MDGS), a technology-based company engaged in advancing innovative solutions for large-scale market applications, today announced it has signed a non-binding letter of intent to purchase a controlling interest in a Business-to-Business (B2B) and Business-to-Consumer (B2C) electronics distributor (the target company) with several outlets in Israel and a growing e-commerce operation.

The target company is a growing wholesale distributer of quality electrical infrastructure products, lighting fixtures, ventilation and heating components, tools, accessories and related professional equipment for contractors, construction companies, public organizations, factories of all sizes and individuals. Sales are made on-site at the target company outlets, and through its full-service website. According to the target company’s unaudited annual financial reports, revenues for 2020 were approximately $11.4 million, and its adjusted EBITDA for 2020 was approximately $1.2 million.

According to the LOI, Medigus will hold 50.06% of the issued and outstanding share capital of the target company, acquired through the acquisition of shares from the target company’s current shareholders, in consideration for cash and restricted ADSs of Medigus. The total consideration, estimated to amount to $3.3 million, is based on the target company’s valuation calculated according to its adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), as reflected in its income statement for the period ended December 31, 2020, multiplied by five, and subject to adjustment based on its 2021 annual results. Under the terms of the LOI, the parties will use commercially reasonable efforts to negotiate and execute the definitive agreement within sixty (60) days of the signing of the non-binding LOI.

Medigus continues to target candidates with strong fundamentals and a solid infrastructure in sectors where it believes its expertise can provide real value. This potential acquisition will expand Medigus’ online platform and may lead to collaborations between Medigus’ subsidiaries using their vast online sales capabilities.

About Medigus

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