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Medigus Ltd stock rockets after it cuts deal with Linkury to establish e-commerce platform for CBD products

The companies will jointly invest $500,000 in the venture for building infrastructure and marketing

A generic representation of selling cannabis online
This marks Medigus Ltd's first foray into the world of medical cannabis

Medigus Ltd (NASDAQ:MDGS) (TASE:MDGS) stock surged Monday after announcing it had entered into a pact with online advertising company Linkury Ltd, owned by Algomizer Ltd (TASE:ALMO), to establish an e-commerce site for cannabidiol or CBD-based products.

Shares in the medical device company shot up 22.1% to $3.48 in premarket trade.

The two companies are looking at entering into a definitive agreement and forming an international advertisement company to carry out the joint venture.

READ: Arcadia Biosciences shares pop after receiving industrial hemp license in Hawaii

The Algomizer group has expertise in Internet video, sales, advertising, and website monetization. It has advanced technologies linked to developing algorithms in the field of artificial intelligence and business intelligence.

It specializes in internet marketing, serving large customers like Google parent Alphabet Inc (NASDAQ:GOOG), Microsoft Microsoft Corporation (NASDAQ:MSFT), Apple Inc (NASDAQ:AAPL) and Instagram.

Under the memorandum of understanding, the two companies will invest in setting up an e-commerce platform and video site designed by Linkury, while Medigus takes care of the business side of things, including regulation related to CBD products. The companies will jointly invest up to $500,000 in the venture for building infrastructure and will own it in equal parts.

Medigus is a medical device company specializing in developing minimally invasive endosurgical tools and highly innovative imaging solutions.

Contact Uttara Choudhury at [email protected]

Follow her on Twitter@UttaraProactive 

Quick facts: Medigus Ltd

Price: 1.74 USD

NASDAQ:MDGS
Market: NASDAQ
Market Cap: $6.61 m
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