- In accordance with Israeli regulations, demand letter has been sent to MDGS and meeting of company shareholders must be held within 21 days of letter’s date
- Pure Capital Ltd. says that it is committed to raising MDGS shareholder value through the process of replacing internal members of the board of directors
- Replacement nominees are led by Professor Benad Goldwasser, a urological surgeon, inventor and entrepreneur; all nominees have been vetted, according to Pure Capital
Privately-held investment firm Pure Capital Ltd. yesterday announced that it has acquired 217,696 ADRs of Medigus Ltd. (NASDAQ: MDGS) (TASE: MDGS), bringing its total ownership stake to greater than five percent of the Israeli medical device company (http://ibn.fm/AVCmk). In accordance with Israeli regulations, Pure Capital has sent a letter to Medigus’ CEO, board chairman and board of directors seeking an immediate general assembly meeting of the MDGS shareholders and the dismissal of its internal members of the board.
In the letter, Pure Capital details a number of recent corporate actions that it believes have been harmful to the company’s shareholders. They include continual capital consolidations and capital raises under unfavorable terms. Further, Pure Capital has asked MDGS to avoid raising capital, making public or private offerings and executing disposition of assets until the meeting has taken place.
In a news release issued earlier this week, Pure Capital noted that it is committed to substantially increasing MDGS’s shareholder value and fully replacing the members of its board. According to Israeli regulations, the requested meeting must be held no later than 21 days from the date of the letter of demand.
A team of replacement nominees, as detailed by Pure Capital, is led by Professor Benad Goldwasser. He is a urological surgeon and co-founder of Medinol Ltd., an Israeli medical device company. He and the other nominees have been carefully vetted and were selected after a thorough due diligence process by Pure Capital.
Pure Capital has led various transactions and capital raises totaling over $200 million over the past two years in the U.S., Canada and Israel.
MDGS is a medical device company specializing in developing innovative imaging solutions and minimally invasive endosurgical tools. The company also developed the MUSE™ system endoscopic device, which is designed for the treatment of gastroesophageal reflux disease (GERD).
For more information, visit the company’s website at www.Medigus.com
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