Medigus Ltd. (NASDAQ:MDGS) jumped 7.5% after releasing its interim condensed consolidated financial results. This year ScoutCam made significant capital raising, with the last occurring on March 22, 2021. As a result, the company deconsolidated ScoutCam and diluted the holding to 27.76%.
As of June 30, 2021, the company held 33.17% in Gix Internet Ltd, 35.86 in Polyrizon ltd, 50.03% in Jeff’s Brands Ltd, and 5.1% in Elbit Imaging Ltd.Since its inception. The company funded its activities through shareholders, and in recent times it has faced recurring operating losses, negative cash flows, and accumulated deficits as per the end of June 2021.
Recently the company announced that its affiliate Gix Internet announced that its subsidiary Gix Media had entered a definitive agreement to buy 70% at Cortex Group. Cortex is a new media technology firm that can convert original content into a profit center via user traffic acquisition.The 70% acquisition will cost around $11 million, and the final amount will establish at closing. MDGS is worth watching in the coming months.
Market Reaction:
On Monday, MDGS stock jumped 7.50% at $1.59 with more than 1.68 million shares, compared to its average volume of 2.97 million shares. The stock has moved within a range of $1.4700 – 1.6200 after opening the trade at $1.5583.
