Medigus Closes $13 Million Underwritten Public Offering of ADSs

Rhea-AI Summary

Medigus Ltd. (Nasdaq: MDGS) has successfully closed a public offering of 7,098,491 American Depositary Shares (ADSs) at $1.83 each, generating gross proceeds of approximately $13 million. The funds will be utilized for working capital and general corporate purposes. Additionally, the underwriter has a 45-day option to purchase 15% more ADSs for over-allotments. This offering was made under an effective registration statement filed with the U.S. SEC. Aegis Capital Corp. served as the sole bookrunner for the transaction.

Positive

• Gross proceeds from the offering are expected to be approximately $13 million.
• The funds will be utilized for working capital and general corporate purposes.
• The underwriter has a 45-day option to purchase an additional 15% of ADSs to cover over-allotments.

Negative

• Potential dilution of existing shareholders due to the public offering.

OMER, Israel, Dec. 04, 2020 (GLOBE NEWSWIRE) -- Medigus Ltd. (Nasdaq, TASE: MDGS), a technology company engaged in advanced medical solutions and innovative internet technologies, today announced the closing of an underwritten public offering of 7,098,491 American Depositary Shares (the “ADSs”). Each ADS was sold to the public at a price per ADS of $1.83. The gross proceeds to the Company from this offering are expected to be approximately $13 million before deducting underwriting discounts and commissions and other estimated offering expenses payable by the Company.

The Company intends to use the net proceeds from this offering for working capital and general corporate purposes.

The Company has also granted the underwriter a 45-day option to purchase up to an additional 15% of the number of ADSs offered in the public offering to cover over-allotments, if any, at the public offering price.

Aegis Capital Corp. acted as sole bookrunner for the offering.

This offering was made pursuant to an effective registration statement on Form F-1 (No 333- 249797) previously filed with the U.S. Securities and Exchange Commission (the “SEC”) and declared effective by the SEC on December 1, 2020. A final prospectus describing the terms of the proposed offering has been filed with the SEC and is available on the SEC’s website located at http://www.sec.gov.

Electronic copies of the final prospectus may be obtained by contacting Aegis Capital Corp., Attention: Syndicate Department, 810 7th Avenue, 18th floor, New York, NY 10019, by email at syndicate@aegiscap.com, or by telephone at (212) 813-1010.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Medigus

Medigus is traded on the Nasdaq Capital Market and the TASE (Tel Aviv Stock Exchange). To learn more about the company's advanced technology, please visit www.medigus.com.

Cautionary Note Regarding Forward Looking Statements

This press release may contain statements that are “Forward-Looking Statements,” which are based upon the current estimates, assumptions and expectations of the Medigus’ management and its knowledge of the relevant market. Medigus has tried, where possible, to identify such information and statements by using words such as “anticipate,” “believe,” “envision,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “target,” “potential,” “will,” “would,” “could,” “should,” “continue,” “contemplate” and other similar expressions and derivations thereof in connection with any discussion of future events, trends or prospects or future operating or financial performance, although not all forward-looking statements contain these identifying words. For example, Medigus uses forward looking statements when describing the proposed use of proceeds. These forward-looking statements represent Medigus’ expectations or beliefs concerning future events, and it is possible that the results described in this press release will not be achieved, due to inter alia the spread of COVID-19 as well as the restriction deriving therefrom. By their nature, Forward-Looking Statements involve known and unknown risks, uncertainties and other factors which may cause future results of Medigus activity to differ significantly from the content and implications of such statements. Other risk factors affecting Medigus are discussed in detail in Medigus’ filings with the Securities and Exchange Commission. Forward-Looking Statements are pertinent only as of the date on which they are made, and Medigus undertakes no obligation to update or revise any Forward-Looking Statements, whether as a result of new information, future developments or otherwise. Neither Medigus nor its shareholders, officers and employees, shall be liable for any action and the results of any action taken by any person based on the information contained herein, including without limitation the purchase or sale of Medigus’ securities. Nothing in this press release should be deemed to be medical or other advice of any kind.

Investor Contact:

Tatiana Yosef
Chief Financial Officer
+972-8-6466-880
ir@medigus.com

FAQ

What is the purpose of Medigus' recent public offering of ADSs?

Medigus intends to use the net proceeds for working capital and general corporate purposes.

How much money did Medigus raise from the ADS offering?

Medigus raised approximately $13 million from the offering.

What is the price per ADS in Medigus' offering?

The price per ADS in the offering was $1.83.

Who was the underwriter for Medigus' public offering?

Aegis Capital Corp. acted as the sole bookrunner for the offering.

What are the risks associated with Medigus' public offering for shareholders?

Shareholders may face dilution of their existing shares due to the issuance of new ADSs.