Medigus: Smart Repair Pro gains Amazon's approval for launch in the UK and 4 top EU countries

Rhea-AI Summary

On October 13, 2020, Medigus Ltd. (NASDAQ:MDGS) announced the completion of Amazon's regulatory processes allowing its subsidiary Smart Repair Pro, Inc. to launch an e-commerce store in the UK, France, Italy, Germany, and Spain. This follows Medigus's recent acquisition of a controlling interest in Smart Repair Pro and Purex, Inc., targeting approximately $3 million in revenue for 2020 with a net profit margin of 35%. The closing of the deal is subject to customary conditions.

Positive

• Medigus acquires a controlling interest in Smart Repair Pro and Purex, allowing entry into the e-commerce market.
• Smart Repair Pro's projected revenue for 2020 is approximately $3 million with a net profit of 35%.
• The launch of Smart Repair Pro's store across five major European countries expands market reach.

Negative

• Acquisition is subject to customary closing conditions, which may delay market entry.
• Existing risks associated with the COVID-19 pandemic could impact future revenue and operations.

OMER, Israel, Oct. 13, 2020 (GLOBE NEWSWIRE) -- Medigus Ltd. (NASDAQ:MDGS) (TASE:MDGS), a technology company engaged in advanced medical solutions and innovative internet technologies, today announced that it was informed by Smart Repair Pro, Inc. a data-driven e-commerce company operating on the Amazon Marketplace, that  all of Amazon's required regulatory processes were completed, which allows for the opening of its store in 5 leading countries: UK, France, Italy, Germany and Spain. Following Amazon's approval, Smart Repair Pro is preparing to launch its brands for the first time in the European and UK market.

Medigus last week announced its entry into e-commerce business by signing a definitive agreement to acquire a controlling interest in Smart Repair Pro, Inc. and Purex, Inc.. According to the agreement, Medigus will hold 50.01% of the issued and outstanding share capital of each of the companies. The closing of the transactions contemplated in the definitive agreements are subject to customary closing conditions.

Smart Repair Pro and Purex 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%.

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 company’s 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. 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. Nothing in the description herein should be understood or construed as an announcement of the closing of the Medigus acquisition of shares from the companies’ current shareholders, actual investment in the companies or the issuance of shares of the companies pursuant to such investment, or the generation of any revenues by Smart Repair Pro, Inc. from the European market. By their nature, Forward-Looking Statements involve known and unknown risks, uncertainties and other factors which may cause future results of the company’s activity to differ significantly from the content and implications of such statements. Other risk factors affecting the company are discussed in detail in the company's filings with the Securities and Exchange Commission. Forward-Looking Statements are pertinent only as of the date on which they are made, and the company undertakes no obligation to update or revise any Forward-Looking Statements, whether as a result of new information, future developments or otherwise. Neither the company 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 company securities. Nothing in this press release should be deemed to be medical or other advice of any kind.

FAQ

What recent developments occurred with Medigus (MDGS) and Smart Repair Pro?

Medigus announced that Smart Repair Pro completed Amazon's regulatory processes to launch its e-commerce store in several European countries.

What is the revenue target for Smart Repair Pro in 2020?

Smart Repair Pro aims for a revenue target of approximately $3 million for 2020.

What percentage of the companies will Medigus own after the acquisition?

Medigus will hold 50.01% of the issued and outstanding share capital of Smart Repair Pro and Purex.

In which countries will Smart Repair Pro launch its store?

Smart Repair Pro will launch its store in the UK, France, Italy, Germany, and Spain.

What is the expected net profit margin for Smart Repair Pro?

The expected net profit margin for Smart Repair Pro is approximately 35%.