Medigus Signs a non-binding MOU for the License and Sale of the MUSE™ System in the Latin America Region for $4.5 Million
OMER, Israel, February 14, 2020- Medigus Ltd. (NASDAQ:MDGS) (TASE:MDGS), a technology company developing minimally invasive tools and an innovator in direct visualization technology, today announced the signing of a $4,000,000 non-binding MOU agreement with L-1 Systems Ltd. for the licensing and sale of know-how and goods relating to the Medigus Ultrasonic Surgical Endostapler (MUSE™) system in the Latin America region. In addition, Medigus shall receive an additional payment of US$500,000 in consideration for support services to be provided during the first year following the execution of the definitive agreement.
Under the terms of the MOU, the parties will use commercially reasonable efforts to negotiate and execute the definitive agreement within one hundred eighty (180) days of the date hereof.
If executed this will be the second engagement of the company regarding the commercialization and licensing of the MUSE™ system. The first agreement, was signed with Golden Grand (Shanghai Golden Grand-Medical Instruments Ltd.) for the know-how licensing and sale of goods for Medigus Ultrasonic Surgical Endostapler (MUSE™) system in China, Hong Kong, Taiwan and Macao in consideration for which Medigus is entitled to receive $3,000,000 subject to completion of certain milestones. Medigus strategy is to engage new partners through similar MUSE™ system licensing and sale agreements in additional territories worldwide.
The MUSE™ system is a single-use flexible transoral stapler that merges the latest advancements in microvisual, ultrasonic and surgical stapling. The device comes equipped with an ultrasonic sight and range finder and a micro ScoutCam™ CMOS camera, which enables a single physician to perform an incisionless transoral fundoplication — the procedure intended to treat the anatomical cause of gastroesophageal reflux disease (GERD).
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.