Medigus Ltd. (TASE:MDGS) reported to the Tel Aviv Stock Exchange today that it had signed a memorandum of understanding with a US medical device firm to provide the miniature medical video cameras and control systems that it develops. Following the report Medigus' share had jumped over 24% by the afternoon.
The agreement calls for Medigus to supply 25 cameras and three control systems so that the US company can investigate whether the equipment integrates with the products that they develop.
The US firm, which was not named, will pay Medigus $217,000 for the equipment, most of the sum immediately.
The memorandum of understanding also states that the parties will conduct negotiations for a larger, long-term licensing agreement in the medical field for the supply of cameras for a number of years. Medigus said that it was unable to estimate the likelihood of the negotiations succeeding for a long-term agreement.
Published by Globes [online], Israel business news - www.globes-online.com - on June 14, 2009
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