Medigus: Jeffs’ Brands Ltd. Announces Closing of $15.5 Million Initial Public Offering

Rhea-AI Summary

Medigus (Nasdaq: MDGS) announced that it now owns 35.27% of Jeffs' Brands following the company's IPO, which closed on August 30, 2022. The IPO generated approximately $15.5 million in gross proceeds before expenses. Jeffs' Brands issued 3,717,473 ordinary shares and warrants at an initial price of $4.16 each, with a warrant exercise price of $4.04. Aegis Capital Corp. acted as the sole book-running manager for the offering, which included a 15% over-allotment option. Trading began on Nasdaq for these securities on August 26, 2022.

Positive

• Medigus' stake in Jeffs' Brands now stands at 35.27%, providing potential for growth and revenue generation from the e-commerce sector.
• The IPO raised approximately $15.5 million, which could be utilized for future investments and operational expansion.

Negative

• Dilution risk for existing Medigus shareholders due to the issuance of new shares in Jeffs' Brands.
• Market volatility surrounding newly listed securities may negatively impact the share price of both Jeffs' Brands and Medigus.

As a result of the closing, Medigus now owns 35.27% of Jeffs' Brands

Tel Aviv, Israel, Sept. 01, 2022 (GLOBE NEWSWIRE) -- Medigus Ltd. (Nasdaq: MDGS), a technology company engaged in advanced medical solutions, innovative internet technologies, and electric vehicle and charging solutions, announced today that Jeffs' Brands Ltd. ("Jeffs' Brands"), a data-driven e-commerce company operating on the Amazon Marketplace, announced on August 30, 2022, the closing of its initial public offering ("IPO"), and the simultaneous closing of a portion of the underwriter’s over-allotment option, for aggregate gross proceeds of approximately $15.5 million before deducting underwriting discounts and other estimated offering expenses.

As a result of the closing of the IPO, Medigus now owns 35.27% of Jeffs' Brands.

Jeffs' Brands issued 3,717,473 ordinary shares and 3,717,473 warrants, each to purchase one ordinary share with an initial exercise price of $4.04 per share, at a combined initial public offering price of $4.16 per ordinary share and warrant.

Jeffs' Brands granted Aegis Capital Corp., the underwriter ("Aegis"), a 45-day over-allotment option to purchase additional shares of ordinary shares and/or warrants to purchase additional ordinary shares up to 15% of the number of ordinary shares and warrants, respectively, sold in the offering solely to cover over-allotments, if any. On August 29, 2022, Aegis partially exercised its over-allotment option with respect to 425,912 warrants to purchase 425,912 ordinary shares.
The ordinary shares and warrants began trading on Nasdaq under the symbol “JFBR” and “JFBRW”, respectively, on August 26, 2022.

Aegis Capital Corp. acted as the sole book-running manager for the offering.

A registration statement on Form F-1 (No. 333-262835) relating to the securities being sold in this offering (the “Registration Statement”) was declared effective by the Securities and Exchange Commission (the "SEC") on August 25, 2022. The offering was made only by means of the Registration Statement and the preliminary prospectus contained therein. Copies of the final prospectus may be obtained on the SEC's website, www.sec.gov, or by contacting Aegis Capital Corp., Attention: Syndicate Department, 1345 Avenue of the Americas, 27th floor, New York, NY 10105, by email at syndicate@aegiscap.com, or by telephone at (212) 813-1010.

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

About Jeffs’ Brands Ltd

Jeffs' Brands is transforming the world of e-commerce by creating and acquiring products and turning them into market leaders, tapping into vast, unrealized growth potential. Through our stellar team’s insight into the FBA Amazon business model, we’re using both human capability and advanced technology to take products to the next level. For More Information on Jeffs’ Brands Ltd visit https://jeffsbrands.com.

About Medigus
Based in Israel, Medigus Ltd. (Nasdaq: MDGS) is a technology company focused on innovative growth partnerships, mainly in advanced medical solutions, digital commerce and electric vehicle markets. Medigus' affiliations in the medical solutions arena include ownership in Polyrizon Ltd. and ownership in industry 4.0 company, ScoutCam Inc. The Company’s affiliates in digital commerce include Gix Internet Ltd., Jeffs' Brands Ltd. and Eventer Technologies Ltd. In the electric vehicle market, Charging Robotics Ltd. and Revoltz Ltd. are also part of the Company’s portfolio of technology solution providers. To learn more about Medigus’ advanced technologies, please visit http://www.medigus.com/.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions or variations of such words are intended to identify forward-looking statements. Because such statements deal with future events and are based on Medigus’ current expectations, they are subject to various risks and uncertainties, and actual results, performance or achievements could differ materially from those described in or implied by the statements in this press release.

The forward-looking statements contained or implied in this press release are subject to other risks and uncertainties, including those discussed in any filings with the SEC. Except as otherwise required by law, Medigus undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. References and links to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release. Medigus is not responsible for the contents of third-party websites.

Company Contact:
Tali Dinar
Chief Financial Officer
+972-8-6466-880
ir@medigus.com

Investor Relations Contact:
Dave Gentry
RedChip Companies Inc.
1-800-RED-CHIP (733-2447)
Or 407-491-4498
MDGS@redchip.com

FAQ

What is Medigus' ownership percentage in Jeffs' Brands after the IPO?

Medigus now owns 35.27% of Jeffs' Brands following the completion of the IPO.

How much money did Jeffs' Brands raise in its IPO?

Jeffs' Brands raised approximately $15.5 million in gross proceeds before expenses.

What are the trading symbols for Jeffs' Brands' shares?

Jeffs' Brands' ordinary shares and warrants trade on Nasdaq under the symbols 'JFBR' and 'JFBRW', respectively.

What was the initial offering price for Jeffs' Brands' shares?

The initial public offering price was $4.16 per ordinary share and warrant.

What is the exercise price for Jeffs' Brands' warrants?

The initial exercise price for Jeffs' Brands' warrants is $4.04 per share.