Xylo: Gix Internet Signed MOU for Investment and Merger with an AI- Robotics Company
Xylo Technologies (Nasdaq: XYLO) announced that its subsidiary Gix Internet (45.75% owned by Xylo, TASE: GIX) signed a non-binding MOU with a robotics company specializing in AI autonomous robotics for medical logistics. The MOU outlines a share exchange transaction, where the robotics company will become a wholly-owned subsidiary of Gix. The completion of this transaction is expected to provide Gix with growth opportunities and technological advancements in AI and robotics. Shareholders of the robotics company will receive 30% of Gix's ordinary shares, with options to increase holdings to 37.5% and 45% upon meeting specific commercial milestones.
- Gix can achieve growth opportunities and technological advancements in AI and robotics.
- The robotics company will become a wholly-owned subsidiary of Gix, potentially strengthening Gix's market position.
- Initial share exchange gives robotics company shareholders 30% of Gix's shares, aligning interests.
- Potential for robotics company shareholders to increase holdings to 37.5% and 45% upon milestone completions encourages performance.
- Transaction is currently non-binding and subject to negotiation and execution of a definitive agreement.
- Completion is contingent on customary closing conditions, introducing risk of delays or failure.
- Potential shareholder dilution for Gix if the robotics company shareholders increase their holdings to 45%.
Insights
The signing of a non-binding memorandum of understanding (MOU) between Gix Internet Ltd., a company heavily backed by Xylo Technologies and a robotics company specializing in AI for logistics in medical centers, signifies a potential strategic maneuver for Gix. This MOU outlines a share exchange transaction, where Gix aims to acquire the Robotics Company fully. From a financial perspective, the transaction could potentially open new avenues for revenue generation and technology integration. However, because the MOU is non-binding, there is still uncertainty surrounding the deal's finalization and its financial impact.
Investors should note the proposed share exchange terms, where the Robotics Company's shareholders could own up to
The potential merger between Gix and the Robotics Company has significant implications for technological innovation. The Robotics Company focuses on AI-driven autonomous robotics solutions, which could provide Gix with a competitive edge in logistics, especially in the medical sector. This integration could lead to advancements in efficiency and reliability in logistics distribution. Autonomous robotics in medical logistics can streamline operations, reduce human error and improve service delivery, which is important in medical centers.
While the technology promises substantial benefits, the integration process is complex and could face hurdles. Successful implementation will require significant capital, seamless integration of technologies and alignment of both companies' strategic goals.
TEL AVIV, Israel, June 06, 2024 (GLOBE NEWSWIRE) -- Xylo Technologies Ltd. (Nasdaq: XYLO) (“Xylo”), a technology-based company engaged in advanced innovative technologies, announced today that Gix Internet Ltd. (“Gix”) (
Pursuant to the MOU, subject to the negotiation and execution of a definitive agreement, Gix will execute a share exchange transaction with Robotics Company. Subject and upon completion of the contemplated transaction, the Robotics Company is set to become a wholly owned subsidiary of Gix. Gix expects the contemplated transaction, once consummated, to allow Gix to execute on additional growth opportunities and technological advancements in the field of AI and robotics.
Pursuant to the MOU and subject to the fulfillment of customary closing conditions in the forthcoming definitive agreement, the shareholders of the Robotics Company will transfer all their shares to Gix in exchange for
About Xylo
Based in Israel, Xylo Technologies Ltd. (Nasdaq: XYLO) is a technology-based company focused on innovative growth partnerships, mainly in advanced medical solutions, digital commerce, and electric vehicle markets. Xylo’s affiliations in the medical solutions arena include ownership in Polyrizon Ltd. Xylo’s affiliates in digital commerce include Gix Internet Ltd. and Eventer Technologies Ltd. In the electric vehicle market, Charging Robotics, Inc. and Revoltz Ltd. are also part of the Company’s portfolio of technology solution providers. Other affiliations of the Company include ParaZero Technologies Ltd. and Zig Miami 54 LLC.
Xylo is traded on the Nasdaq Capital Market. To learn more about Xylo’s advanced technologies, please visit https://ir.xylotech.ai/
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 Xylo’ current expectations, they are subject to various risks and uncertainties, and actual results, performance or achievements of Xylo could differ materially from those described in or implied by the statements in this press release. For example, Xylo uses forward looking statements when describing the potential synergies that may result from the merger between Gix Internet Ltd. and the Robotics Company.
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, Xylo 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. Xylo is not responsible for the contents of third-party websites.
Company Contact:
Tali Dinar
Chief Financial Officer
ir@xylotech.ai
Investor Relations Contact:
Michal Efraty
Investor Relations,
michal@efraty.com
FAQ
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