Stock Alert: Medigus Rises 75% As It Intends To Invest In Polyrizon

(RTTNews) - Shares of Medigus Ltd. (MDGS) are surging more than 75% Friday morning after the medical device company announced the signing of a binding letter of intent (LOI) with privately-held Polyrizon, for investment and joint commercialization of biological gels, developed by Polyrizon for the protection of biological threats like Covid-19.

As part of the LOI, both the companies are to enter into a deal that gives exclusive right to Medigus to market, resell and distribute Polyrizon's products for a period of four years, subject to FDA approval of the products.

Polyrizon's Biogel, that utilizes its proprietary Capture & Contain technology, can be applied topically and is proposed to prevent allergens and virus intrusion through the upper airways and eye cavities,

Medigus can opt to invest up to $100,000 in Polyrizon for 20% of Polyrizon's stock. The company can have the option to invest an additional $1 million, exercisable until the earlier of three years of the closing of the initial investment or the occurrence of an investment of at least $500,000 at a valuation of at least $10 million.

MDGS is currently trading at $2.56. It has traded in the range of $0.83- $3.48 in the past one year.