Medigus: Revoltz Initiates on Exclusive Distribution Agreement of $2.7 Million in Revenues and Completes the Production of the First 50 PORTO Micro-Mobility EVs
Medigus (Nasdaq: MDGS) announces the completion of the initial production batch of 50 units of its micro-mobility electric vehicle 'PORTO' by its EV joint venture Revoltz The joint venture aims to sell 150 vehicles in the first year under a $2.7 million revenue Agreement with a premier distributor in Israel. The PORTO EV offers a 100 km range, 250L delivery payload, and advanced stability features, tailored for the last-mile delivery market.
The announcement by Medigus Ltd. regarding their subsidiary's EV joint venture, Revoltz Ltd, completing its initial production batch and setting up for delivery under a distribution agreement is a noteworthy development in the EV micro-mobility sector. The agreement, valued at $2.7 million, signals a strategic entry into the Israeli market and possibly, the adjacent territories. The commitment from the Distributor to purchase 150 vehicles in the first year, with scaling-up sales targets, indicates a strong initial demand and potential for growth.
Micro-mobility solutions like PORTO are gaining traction globally as they offer cost-effective, agile and environmentally friendly alternatives for last-mile deliveries. The specific design features of PORTO, such as the tilting suspension mechanism and even cargo weight distribution, are tailored to enhance stability and safety, which are critical factors for adoption by delivery services. The integration of service and maintenance within the sales agreement is a smart move, likely to increase customer trust and satisfaction, leading to higher retention and potentially more sales in the long-term.
From a financial perspective, the production milestone and subsequent delivery setup by Revoltz can be seen as a positive signal for Medigus Ltd.'s investors. The $2.7 million revenue from the Agreement may not be a significant figure when compared to the revenues of larger automotive companies, but for a joint venture entity like Revoltz, it represents a solid start. The five-year term of the Agreement suggests a stable revenue stream, which could positively impact Medigus's financial projections and stock valuation.
It's important to note that the success of this venture hinges on the execution of the distribution and the actual market reception of the PORTO vehicles. Factors such as product reliability, effectiveness of the service and maintenance provisions and the scalability of production will be key in determining if the revenue potential can be fully realized and if the venture can maintain or increase its market share against competitors.
The introduction of PORTO by Revoltz, with its focus on sustainability through electric propulsion, aligns with the global trend towards reducing carbon emissions in transportation. The vehicle's electric nature, coupled with its suitability for urban environments, supports the broader objectives of reducing traffic congestion and pollution. This strategic alignment may enhance the brand's reputation and appeal to environmentally conscious consumers and businesses.
Furthermore, the emphasis on a sturdy design and advanced tilting mechanism may set a new standard for safety and performance in the micro-mobility EV sector. If PORTO proves successful, it could serve as a case study for the feasibility and benefits of adopting similar vehicles on a larger scale, potentially influencing policy decisions and consumer preferences towards sustainable urban mobility solutions.
03/27/2024 - 07:55 AM
Following completion of initial production, Revoltz sets up for delivery in accordance with its distribution agreement (the “Agreement”) , aiming to sell 150 vehicles in the first year of the A greement
Tel Aviv, Israel, March 27, 2024 (GLOBE NEWSWIRE) -- Medigus Ltd. (Nasdaq: MDGS), a technology company engaged in advanced medical solutions, innovative internet technologies and electric vehicle (“EV”) and charging solutions, announced today that Revoltz Ltd, its EV joint venture, 19.9% owned by its subsidiary Fuel Doctor Holdings, Inc. (67.15% ), completed its first production batch of 50 units of its micro-mobility electric vehicle, ‘PORTO’.
The completion of production is a significant step in enabling Revoltz to prepare for shipment of units in accordance with the Agreement signed over the past year.
During 2023, Revoltz and a premier distributor in Israel (the “Distributor”) entered into the Agreement, worth $2.7 million in revenue, with the goal to steer the advanced PORTO EVs into Israel and adjacent territories.
As part of the agreement, the Distributor has already purchased 50 PORTO units for the last-mile delivery market and is committed to purchasing a total of 150 vehicles in the first year of the Agreement. The five-year Agreement includes annual and scaling-up sales targets for each year.
The Distributor will provide service and maintenance for the PORTO vehicles as part of the Agreement, ensuring high-quality support and longevity for customers focusing mainly on the local delivery market.
Revoltz has made strides in the EV industry with the launch of its flagship model, PORTO, which provides a seamless blend of functionality, sturdy design, and agility, designed specifically for the growing last-mile delivery market. The PORTO vehicle provides 100 km range with a delivery payload of 250L on a single charge, offering similar payload capacity as a small hatchback car at lower cost and with the ability to maneuver in tight urban environments. The PORTO uses an advanced tilting advanced leaning suspension mechanism ensures best in class stability even under full load. With high volume loading spaces integrated over both axles, the cargo weight is distributed evenly, making for a safe and confident ride with unmatched vehicle dimensions.
About Medigus
Based in Israel, Medigus Ltd. (Nasdaq: MDGS) is a technology company focused on innovative growth partnerships, mainly in advanced medical solutions, digital commerce and electric vehicle markets. Medigus' affiliations in the medical solutions arena include ownership in Polyrizon Ltd. The Company’s affiliates in digital commerce include Gix Internet Ltd., Jeffs' Brands Ltd. and Eventer Technologies Ltd. In the electric vehicle market, Charging Robotics Ltd. and Revoltz Ltd., by way of Fuel Doctor Holdings, Inc. are also part of the Company’s portfolio of technology solution providers. Medigus is traded on Nasdaq Capital Market. To learn more about Medigus’ advanced technologies, please visit http://www.medigus.com/ .
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions or variations of such words are intended to identify forward-looking statements. Because such statements deal with future events and are based on Medigus’ current expectations, they are subject to various risks and uncertainties, and actual results, performance or achievements could differ materially from those described in or implied by the statements in this press release. For example, Medigus uses forward-looking statements when describing PORTO’s ability to satisfy market needs.
The forward-looking statements contained or implied in this press release are subject to other risks and uncertainties, including those discussed in any filings with the SEC. Except as otherwise required by law, Medigus undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. References and links to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release. Medigus is not responsible for the contents of third-party websites.
Company Contact: ir@medigus.com
Investor Relations Contact: michal@efraty.com
What is the ticker symbol for Medigus ?
The ticker symbol for Medigus is MDGS.
How many units of the PORTO electric vehicle were produced in the initial batch?
The initial production batch of the PORTO electric vehicle consisted of 50 units.
What is the revenue value of the Agreement between Revoltz and the Distributor?
The Agreement between Revoltz and the Distributor is worth $2.7 million in revenue.
What is the delivery payload capacity of the PORTO electric vehicle?
The PORTO electric vehicle offers a delivery payload capacity of 250L.
What market segment is the PORTO electric vehicle designed for?
The PORTO electric vehicle is designed specifically for the last-mile delivery market.
