Israel based tech company Medigus Ltd (NASDAQ:MDGS) was in the news yesterday following a key announcement with regards to its affiliate Gix Internet. That led to a rally in the Medigus stock as well and it ended the day with gains of as much as 7%.
The company announced that Gix Media, the subsidiary of its affiliate Gix Internet, inked a definitive agreement by way of which it is going to complete the acquisition of a 70% stake in Cortex Group. In this context, it is perhaps necessary for investors to keep in mind that Cortex Group is involved in the media tech space and is best known for having the expertise to monetise original content by way of traffic acquisition.
On the other hand, it is also necessary to keep in mind that Gix Media is going to make a payment of around $11 million for the acquisition of the 70% stake. However, at the same time, it is necessary to remember that the final amount is going to be decided on the day that the transaction is going to be closed by the two parties. It seems that the market is quite excited about this development and it might be the right time to start tracking the Medigus stock.