Medigus Signs a Collaboration Agreement with L1 Systems for the Commercialization of COVID-19 Medical Products and Solutions
OMER, Israel, Apr 27, 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 collaboration agreement with L-1 Systems Ltd. for the joint commercialization of various COVID-19 related products and solutions to governmental agencies and institutional healthcare organizations. Pursuant to the terms of the agreement, in consideration for jointly marketing the products with L1 Systems and providing working capital financing, Medigus shall be entitled to proceeds from sales based on a profit share model based on the scope of financing provided by Medigus, 50% of the profits in the case Medigus introduces the products, and in all other cases, of 5% of the profits.
Medigus and L1 Systems have entered a pilot arrangement with a prospective customer for an initial order, which conditioned upon such customer's satisfaction, may lead to larger purchase orders.
The agreement marks the second collaboration between Medigus and L1 Systems following the previously disclosed agreement for the commercialization and licensing of the MUSE(TM) system in Latin America. The collaboration seeks to capitalize on the synergies derived from L1 System's strong supply chain connections and Medigus' medical experience and network.
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.