Medigus Board of Directors Announces Cost Reduction Measures

Medigus (NASDAQ: MDGS) (TASE: MDGS), a medical device company developing minimally invasive endosurgical tools and an innovator in direct visualization technology, issued on November 14, 2018 a letter to the shareholders from the board of directors. In the letter, the board of directors of the Company notified the shareholders that further to the review of the company, its financial condition, products and employees, the board of directors of the company has resolved to take steps to reduce the ordinary course expenses of the company by approximately 20% in order to be better aligned with the company’s business needs.

As quoted in the press release:

The board of directors believes that such steps are required in order to ensure that the company’s resources are used in the most efficient and optimal way to promote the company’s operations.

The steps, which will enter into effect in the near future, include a contemplated organizational change, designed to curtail the company’s ongoing cash burn, while continuing to support the ongoing operations of the company. In its decision, the board of directors noted that this approach will allow the company to reserve capital, which will allow the company to explore new business opportunities.

Click here to read the full press release.