TEL AVIV - Xylo Technologies Ltd. (NASDAQ:XYLO), an Israel-based tech company, announced today that its affiliate Gix Internet Ltd. (TASE:GIX) has entered into a memorandum of understanding (MOU) with a robotics company specializing in AI and autonomous solutions for medical logistics. Under the MOU, Gix Internet will acquire the robotics firm, making it a wholly owned subsidiary in a share exchange transaction.
The agreement stipulates that shareholders of the robotics company will exchange their shares for a 30% stake in Gix Internet. Additionally, they may increase their stake to 37.5% and 45% upon achieving two separate commercial milestones.
This strategic move is expected to bolster Gix's capabilities in AI and robotics, potentially enhancing its growth and technological prowess in these sectors. The completion of the transaction is subject to customary closing conditions and the execution of a definitive agreement.
Xylo Technologies, through its affiliations, is actively involved in various tech sectors, including advanced medical solutions, digital commerce, and electric vehicles. Its portfolio includes stakes in companies like Polyrizon Ltd., Eventer Technologies Ltd., Charging Robotics, Inc., and Revoltz Ltd.
This news is based on a press release statement from Xylo Technologies Ltd.
In other recent news, Xylo Technologies, formerly Medigus Ltd., has been making significant strides in its business operations.
The company announced plans to acquire a German firm specializing in AI for predictive maintenance and condition monitoring, which is expected to enhance Xylo's portfolio across various industries. Xylo will initially acquire 51% of the target company's outstanding shares with a down payment of 1.5 million Euros. The remaining shares will be purchased based on the final transaction price, determined by the 2024 EBITDA results.
In a rebranding move, Medigus Ltd. disclosed its plan to change its name to Xylo Technologies Ltd. The rebranding reflects the company's shift in focus towards innovative technologies and includes a new corporate logo and website.
Xylo's subsidiary, Charging Robotics Ltd., completed the installation of a novel wireless charging system for electric vehicles (EVs) in an automated parking system in Tel Aviv. The system adapts to limited electricity supply and prioritizes charging processes, making it a first-of-its-kind for such facilities.
In related news, Revoltz Ltd., a joint venture of Xylo, completed the production of its first batch of 50 micro-mobility electric vehicles, named PORTO, marking a significant step towards penetrating the Israeli last-mile delivery market.
InvestingPro Insights
Xylo Technologies Ltd. (NASDAQ:XYLO) has been navigating a challenging market environment, as reflected in their real-time financial metrics. With a market capitalization of just $3.37 million, the company is relatively small in size, which can often lead to higher volatility in its stock price. Indeed, the company's price has experienced a significant drop, trading at only 25.76% of its 52-week high.
From a valuation perspective, Xylo Technologies is trading at a low revenue valuation multiple, with a price to book ratio in the last twelve months as of Q4 2023 standing at 0.14. This could indicate that the market has undervalued the company's assets relative to its current market price, potentially presenting an opportunity for investors.
InvestingPro Tips for Xylo Technologies highlight a mixed financial situation. On the positive side, the company holds more cash than debt on its balance sheet, which is a sign of financial stability. Additionally, it boasts a high shareholder yield, which could be attractive for investors looking for returns. On the other hand, the company is not profitable over the last twelve months, and the valuation implies a poor free cash flow yield. Moreover, the stock has taken a significant hit over the last week, month, and three months, underlining the market's bearish sentiment.
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