Mogo’s ownership in Coinsquare has increased to approximately 39% of the outstanding common shares
All figures in Canadian $
Mogo Inc., a digital payments and financial technology company, announced that it has closed its previously announced acquisition of an additional 2.0% of the outstanding common shares of Coinsquare Ltd. (“Coinsquare”), Canada’s leading cryptocurrency platform, from Michael Diamond and two affiliated companies (the “Vendors”). Mogo also has an option (the “Option”) to acquire up to an additional 3.4% of the outstanding common shares of Coinsquare (the “Coinsquare Shares”) from the Vendors until October 13, 2021 under similar terms and subject to certain conditions, which when combined with Mogo’s existing purchase warrant in Coinsquare, could increase Mogo’s total ownership by up to an additional 14% of the outstanding common shares. Mogo requires Coinsquare board approval to increase its ownership interest in Coinsquare over 49.9%. There is no certainty that the Coinsquare board of directors will grant such approval.
Since its founding in 2014, Coinsquare has grown to become the leading cryptocurrency platform in Canada. Coinsquare continues to experience rapid growth in assets, revenue, and operating profitability.
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The Acquisition was made pursuant to a share purchase agreement between Mogo and the Vendors dated June 15, 2021, pursuant to which Mogo acquired 655,644 Coinsquare Shares from the Vendors for aggregate consideration consisting of the issuance of 378,774 common shares of Mogo (the “Mogo Shares”) and a cash payment of $5 million.
The Mogo Shares issued to the Vendors were qualified by the Company’s prospectus supplement dated June 14, 2021 to Company’s final short form base shelf prospectus dated April 15, 2021, and registered under the related registration statement filed with the United States Securities and Exchange Commission.
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This press release does not constitute an offer to sell or the solicitation of an offer to buy securities, nor will there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.
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