Medigus: Gix Internet Announced that its Board of Directors Resolved to Identify New Opportunities and Activities for a Merger
OMER, Israel, March 31, 2021 - Medigus Ltd. (Nasdaq: MDGS), a technology company engaged in advanced medical solutions and innovative internet technologies, today announced that Gix Internet (24.99%) (TASE: GIX), a global marketing technology (MarTech) solutions company for online performance-based-marketing, announced several business updates.
Gix Internet's board of directors has resolved to establish a committee of the board of directors to identify new opportunities and activities to merge with Gix, focusing on technology and other sectors, that are not necessarily in the field of online advertising. If a new activity is found and leads to a binding agreement and a merger, Gix Internet will examine the possibility of taking Linkury public and/or distributing its shares as a dividend to Gix's shareholders.
Additionally, Gix's board of directors has resolved that all of the group's online advertising activities will be consolidated under Gix's subsidiary Linkury Ltd., including any future acquisitions and mergers, should they occur, in the sector of online advertising.
In accordance with Gix announcement, Linkury concluded the year of 2020 with revenues of NIS 131 million (approximately $38 million) and net profit of NIS 14.5 million (approximately $4.2 million).
Medigus recently increased its holdings in Gix Internet to 24.99%, subject to further approval of the Tel Aviv Stock Exchange Ltd. Pursuant to the Securities Purchase Agreement between Medigus Ltd., Gix Interent Ltd., f/k/a Algomizer Ltd., and Linkury Ltd., dated as of June 19, 2019, Medigus exercised part of its right to convert Linkury Shares and was issued by Gix Internet with additional 5,903,718 ordinary shares. Medigus is entitled to additional 3,954,980 ordinary shares in Gix Internet, representing approximately 12.24% additional stake in Gix Internet, which will bring Medigus holdings to 33.17%. Pursuant to the provisions of the Companies Law, the issuance of shares representing 25% or more of the voting rights in a public company is subject to prior shareholder approval.
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.