Medigus: Gix Media to Acquire 70% of Leading Innovative Media-Tech Company Cortex Group for Approximately $11 Million
August 31 2021 - 9:30AM
Medigus Ltd. (Nasdaq: MDGS), a technology company engaged in
advanced medical solutions, innovative internet technologies and
electric vehicle and charging solutions, announced today that its
affiliate Gix Internet (36.74% on a fully diluted bases) (TASE:
GIX), a global marketing technology (MarTech) solutions company for
online performance-based-marketing, announced that Gix Internet’s
subsidiary, Gix Media signed a definitive agreement for the
purchase of 70% at Cortex Group, an innovative media-tech company
that has developed expertise in turning original content into a
profit center through user traffic acquisition.
The acquisition of 70% of Cortex's shares by Gix Media will be
made for approximately $ 11 million, with the final amount to be
determined on the closing date of the transaction.
Cortex was established in 2015 and has since been operating with
great success in the field of online advertising. Cortex is an
innovative media-tech company that has developed capabilities that
enable the conversion of original content into a profit center by
acquiring user traffic. Cortex's business model is based on
purchasing advertising space from publishers such as YAHOO,
Outbrain, Google and more. Cortex employs about 17 people in
its offices in Tel Aviv.
According to Cortex's audited financial statements for the first
half of 2021, its revenues amounted to ~$ 12.3 million, an increase
of 52% compared to the corresponding period last year. Cortex's
operating profit for the first half of 2021 amounted to $ 1.3
million, an increase of 124% compared to the corresponding period
last year. In addition, Cortex's revenues for the period of the 12
months ended June 30, 2021 amounted to ~$ 27.5 million and
operating profit amounted to ~$ 3.6 million.
According to the agreement signed with Cortex and its
shareholders, in the first phase, Gix Media will purchase 70% of
the fully diluted issued share capital of the company from the
sellers. Subsequently, upon achieving certain mutually agreed upon
milestones, Gix Media will purchase the balance of the shares from
the sellers, such that by the beginning of 2025, it will become the
owner of 100% of the fully diluted issued share capital of
Cortex.
Gix Internet and Gix Media have signed a
non-binding Memoranda of Understanding with a banking institute, to
provide a credit line totaling up to $3.5 million and loans
totaling approximately $7 million, which will be used, among other
things, for the purpose of acquiring Cortex, subject to the
completion of the transaction.
In addition, according to Gix Internet’s financial reports for
the first six months of 2021, its revenues amounted to ~$ 16.4
million.
About Medigus
Medigus is traded on the Nasdaq Capital Market.
To learn more about the company’s advanced technology, please
visit www.medigus.com.
Cautionary Note Regarding Forward
Looking Statements
This press release may contain statements that are
“Forward-Looking Statements,” which are based upon the current
estimates, assumptions and expectations of Medigus’ management and
its knowledge of the relevant market. The company has tried, where
possible, to identify such information and statements by using
words such as “anticipate,” “believe,” “envision,” “estimate,”
“expect,” “intend,” “may,” “plan,” “predict,” “project,” “target,”
“potential,” “will,” “would,” “could,” “should,” “continue,”
“contemplate” and other similar expressions and derivations thereof
in connection with any discussion of future events, trends or
prospects or future operating or financial performance, although
not all forward-looking statements contain these identifying words.
These forward-looking statements represent Medigus’ expectations or
beliefs concerning future events, and it is possible that the
results described in this press release will not be achieved. By
their nature, Forward-Looking Statements involve known and unknown
risks, uncertainties and other factors which may cause future
results of Medigus’ activity to differ significantly from the
content and implications of such statements. Other risk factors
affecting Medigus and Cortex Group are discussed in detail in
Medigus’ filings with the Securities and Exchange Commission.
Forward-Looking Statements are pertinent only as of the date on
which they are made, and Medigus undertakes no obligation to update
or revise any Forward-Looking Statements, whether as a result of
new information, future developments or otherwise. Neither Medigus
nor its shareholders, officers and employees, shall be liable for
any action and the results of any action taken by any person based
on the information contained herein, including without limitation
the purchase or sale of Medigus’ securities. Nothing in this press
release should be deemed to be medical or other advice of any
kind.
Investor Contact
Tali Dinar Chief Financial Officer +972-8-6466-880
ir@medigus.com
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