Medigus Ltd. (NASDAQ: MDGS) began the last full week of trading on the down side. The Israeli-based technology company engaged in advanced medical solutions, innovative internet technologies, and electric vehicle and charging solutions, announced that last Friday, Jeffs' Brands Ltd. (owned 34.87% by Medigus) a data-driven E-commerce company operating on the Amazon Marketplace, announced the signing of an additional non-binding letter of intent with Sky Growth Partners Ltd. to invest in advanced laser- based wireless charging technology systems, for the remote charging of drones and unmanned aircrafts.
The LOI follows Jeffs’ Brands’ announcement from November 29, in which the board of directors resolved to identify potential strategic transactions, in the field of advanced technologies, with the goal of maximizing shareholder value.
According to the LOI, Sky Growth will establish and transfer all of its rights in the technology to a new Israeli company that will develop, manufacture and market the technology. Following an investment of $2.5 million by Jeffs’ Brands, it will hold a 70% equity interest in NewCo.
The LOI also includes certain milestone conditions that if achieved by NewCo, will grant the founders, for no additional consideration, additional equity interests in NewCo.
The investment is subject to the successful completion of due diligence, the execution of binding definitive agreements with respect to the Investment and compliance with any regulatory requirements and approvals.
MDGS shares gave back 33 cents, or 8.6%, to $3.50.
