Medigus: Jeffs’ Brands Ltd. Signed a Non-Binding LOI to Acquire a Leading Consumer Products Brand Company

Rhea-AI Summary

Medigus Ltd. (Nasdaq: MDGS) announced that its 50.03% owned subsidiary, Jeffs’ Brands Ltd., has signed a non-binding Letter of Intent to acquire a private consumer products company for $6 million, with up to an additional $13.25 million based on future profitability. The target company, which sells products in major retailers like Walmart and Target, generated $8 million in revenue in 2020. This acquisition aims to expand Jeffs’ Brands' portfolio and enhance revenue growth.

Positive

• Acquisition of consumer products company for $6 million, enhancing product portfolio.
• Target company generated $8 million in revenue in 2020, indicating potential for revenue growth.
• Sales through major North American retailers and e-commerce platforms can improve market reach.

Negative

• Acquisition is non-binding, meaning it may not be finalized.
• Potential deferred consideration of $13.25 million could strain future cash flow based on performance.

The consumer products are being sold today at Walmart, Target, Staples, Kroger and more. The target company finished 2020 profitable with $8 million in revenues

OMER, Israel, Aug. 17, 2021 (GLOBE NEWSWIRE) --  Medigus Ltd. (Nasdaq: MDGS), a technology company engaged in advanced medical solutions, innovative internet technologies and electric vehicle and charging solutions, today announced that its 50.03% owned subsidiary, Jeffs’ Brands Ltd. (holding 100% in Smart Repair Pro, Inc. and other wholly owned subsidiaries), a data-driven e-commerce company operating on the Amazon Marketplace, signed a non-binding Letter of Intent to acquire 100% of the issued and outstanding share capital of a private company of branded consumer products, for an initial consideration of $6 million (to be paid in cash and equity) with a potential deferred consideration of up to additional $13.25 million, conditional upon future sales and profitability targets.

The acquisition target company, engaged in the design, manufacturing and marketing of original branded consumer products, are mainly sold at leading North American mass retailers, including Walmart USA, Walmart Canada, Target, Staples, Kroger and more. The target company finished 2020 profitable with $8 million in revenues.

The target company sells proprietary consumer products, 60% of which are sold in the U.S. market. Sales are made through global retailers as well as distributors worldwide.

The target company has  online marketing platform, including shops and brands in leading e-commerce websites and stores.

The non-binding LOI to acquire a leading consumer brand, is part of Jeffs’ Brands mission to expand its products portfolio, increase revenue growth, both organic and inorganic, through acquisitions and implement its vast experience and knowledge for the marketing of more brands and products.

About Medigus

Medigus is traded on the Nasdaq Capital Market. To learn more about Medigus’ 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 Medigus’ management and its knowledge of the relevant market. The company 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 potential transaction with Jeffs’ Brands, as there is no assurance on whether the transaction will be executed or consummated. 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. By their nature, Forward-Looking Statements involve known and unknown risks, uncertainties and other factors which may cause future results of the Medigus’ activity to differ significantly from the content and implications of such statements. Other risk factors affecting Medigus are discussed in detail in the 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 

Contact (for media only)
Tali Dinar
Chief Financial Officer
+972-8-6466-880
ir@medigus.com

FAQ

What is the focus of the acquisition by Medigus Ltd. through Jeffs’ Brands?

The acquisition aims to enhance the product portfolio and drive revenue growth for Jeffs’ Brands.

What is the initial consideration for the acquisition mentioned in the Medigus press release?

The initial consideration for the acquisition is $6 million, payable in cash and equity.

How much revenue did the target company generate in 2020?

The target company generated $8 million in revenue in 2020.

What are the conditions for the additional payment in the acquisition agreement?

The additional payment of up to $13.25 million is conditional upon achieving future sales and profitability targets.

Which major retailers sell the products of the acquisition target company?

The products are sold at major retailers like Walmart, Target, Staples, and Kroger.