Israeli medical device firm Medigus (NASDAQ:MDGS) saw its share soar over the course of the past week following a significant announcement. The stock rallied by as much as 100% after the announcement and it remains to be seen if it can continue to add to its gains over the coming days. The rally came about after the company announced that it completed all Amazon related regulatory processes.
Last week the company announced Smart Repair Pro informed it that all the regulatory processes involved with Amazon had been cleared by Medigus. It is a significant development for the company since it will Medigus to establish its stores in Spain, Italy, Germany, the United Kingdom, and France.
The medical device firm is involved in manufacturing, developing, and eventually the marketing of a range of products. Some of the more well-known products marketed by Medigus include direct vision systems and surgical endostaplers among others.
The most important product marketed by the company is Medigus Ultrasonic Surgical Endostapler (MUSE). The product is meant for one-time use and is deployed in incision-free treatment of gastroesophageal reflux disease.
As mentioned earlier, the market reacted positively to the development at Medigus and the stock gained steadily over the course of the past week. The rally continued on Tuesday and the stock managed to gain as much as 57.78% to hit $2.98 a share.
In this regard, it is also necessary to mention that Medigus has a 52 week high of $5.15 a share. However, it is necessary for investors to remember that the rally came about due to fundamental triggers and that could be positive for the stock as well.
Last week, the company announced that it had successfully completed the acquisition of a pair of companies, both of which operate on the marketplace operated by e-commerce giant Amazon. One of those companies was Smart Repair Pro.
Smart Repair Pro is involved in the e-commerce data space and Medigus managed to pick up a stake of 50.01% in it. Smart Repair Pro makes almost the entirety of its business on the Amazon marketplace.
The other company acquired by Medigus is Purex and it is also an e-commerce data operation. Like in the case of Smart Repair Pro, Medigus picked up a stake of 50.01% in Purex as well. The company aims to acquire the stakes through straight cash investments and through share purchases.
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