Medigus Signs a non-binding letter of intent to acquire a controlling interest of two companies which operate as sellers of three brands on Amazon Marketplace
OMER, Israel, Aug. 28, 2020 (GLOBE NEWSWIRE) -- Medigus Ltd. (NASDAQ:MDGS) (TASE:MDGS), a technology company developing minimally invasive tools and an innovator in direct visualization technology, today announced its entry into e-commerce business by signing a non-binding letter of intent 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 LOI, 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. Medigus shall invest $1,250,000 in the Companies 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 $750,000 in restricted ADSs subject to the companies’ achievement of certain milestones throughout 2021.
Liron Carmel, CEO of Medigus, said “This agreement is part of Medigus’ efforts to strengthen its two main fields of operation: medical operations which include the MUSE™ system, customized visualization solution through ScoutCam, Inc. and Polyrizon Ltd.’s bio-gels, and online operations through Gix Internet Ltd., Linkury Ltd. and these new e-commerce operations on the Amazon Marketplace. By leveraging our broad knowledge, experience and capabilities, we continue to maximize our operations and value proposition.”
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%.