Medigus Ltd. (NASDAQ:MDGS), a technology company engaged in advanced medical solutions and innovative internet technologies, today released a letter to its shareholders from its Chief Executive Officer, Mr. Liron Carmel.
Dear Shareholder,
Medigus’ mission has always been the advancement of innovative technologies, however beginning two years ago we initiated an in-depth review of the Company, and after a thorough review of our successes, failures, strengths and weakness, as well as a critical look at our product portfolio, we made some important discoveries.
We discovered that our abilities to navigate the path from proven concept to commercialization is where we may provide real value to our partners.
We also recognized that partnering with later stage companies is an inefficient use of our resources. Therefore, going forward, we will seek to grow opportunities with shorter timeline horizons, and once the defined objectives have been achieved, we will seek a strategic partner to help us take them to the next stage, or spin the business off as a separate entity.
Finally, while we remain technology oriented, we have broadened our market focus to include sectors that have shorter go-to-market pathways. We believe that our diversified activities have attracted a broader investor pool, and with greater access to capital, we are able to pursue additional opportunities, potentially accelerating our growth.
I believe this new model represents the sweet spot for our skill set and allows us to generate the greatest value for our stakeholders. It enables us to handle several projects at once rather than committing all our assets to single, larger scale projects. It also provides us with greater flexibility in allocating capital, and the ability to act quickly on time sensitive opportunities.
Since implementing these changes, we have pursued several opportunities that we believe will result in significant return to our shareholders. Consistent with our revised strategy, the work we have done with ScoutCam and Muse™ is as follows:
ScoutCam
Leveraging successful projects in the aerospace (NASA), nuclear (Westinghhouse) and automotive (Rolls Royce) sectors, Scoutcam is working to establish a dedicated industrial salesforce. To facilitate the shift to broad scale commercialization, we established ScoutCam Ltd., a private Israeli subsidiary, and executed a stock exchange and transferred the related technology and activity to ScoutCam Inc. (OTCQB:SCTC), an entity in which we own approximately 28.06% today. As of today, ScoutCam Inc. is traded at a market value of approximately $66 million.
The MUSE System
We continue to seek opportunities to sell or license the MUSE™ technology to parties with dedicated marketing capabilities, as we already accomplished with the 2019 licensing and sale agreement with Golden Grand in greater China in consideration for $3 million, subject to certain milestones.
Current Activities
We continued our interest in the medical segment under the new strategy as well as other tech-heavy sectors, including ecommerce, digital marketing, and e-transportation. Each of these segments have proven business models within preliminary markets, and we will continue to help management prepare for large scale commercialization. The following is an overview of our activities and our expectations going forward; for more detail on any of these projects, please visit our website where you can also view all press releases and our filings with the U.S. Securities and Exchange Commission.
Medical
Polyrizon Ltd. develops highly differentiated biological gels that protect patients against biological threats and external pathogens. We intend to pursue a pre-clinical trial to examine its bio-gel efficacy to protect against coronavirus infection. As of today, we hold approximately 33.24% of Polyrizon’s share capital.