Cryptocurrency Digital Payments Fintech News

Mogo Announces Agreement to Acquire Additional Shares in Canada’s Leading Crypto Platform, Coinsquare

Mogo Announces Agreement to Acquire Additional Shares in Canada’s Leading Crypto Platform, Coinsquare

Combined with previously announced transactions and Mogo’s existing purchase warrant, Mogo could now increase its ownership in Coinsquare to 53%

Mogo Inc., a digital payments and financial technology company, today announced that it intends to increase its ownership position in Coinsquare Ltd. (“Coinsquare”), Canada’s leading cryptocurrency platform, through the acquisition (the “Acquisition”) of an additional 2.0% of the outstanding common shares of Coinsquare (the “Coinsquare Shares”) from Michael Diamond and an affiliated company (the “Vendors”). Mogo will also have an option (the “Option”) to acquire an additional 3.4% of the outstanding Coinsquare Shares from the Vendors within 120 days from the closing date of the Acquisition under similar terms, subject to certain conditions. The Acquisition, including the exercise of the Option, combined with Mogo’s existing ownership of Coinsquare, the previously announced acquisition of an additional 5.4 million Coinsquare Shares (on May 13, 2021), and assuming the exercise of Mogo’s existing purchase warrant in Coinsquare, would increase Mogo’s total ownership in Coinsquare to approximately 53%.

Read More: Cirrus Adds Treasury Services Capabilities to Its Document Management Solution Suite

“Coinsquare is the leading crypto trading platform in Canada and a highly valuable asset in the Canadian fintech ecosystem,” said Greg Feller, President of Mogo. “They continue to perform very strongly, growing both their revenue and EBITDA rapidly in 2021. The company generated record monthly revenue of $8.0 million in April1, and May’s performance is expected to exceed that high mark. In addition to the financial merits of our investment, this is a great fit strategically and supports our objectives to build the most comprehensive digital wallet in Canada, including a range of investing and saving options and a free stock trading solution. By leveraging Coinsquare’s leading crypto capabilities, along with Mogo’s leading digital wallet capabilities, we are well positioned to execute on our growth plans.”

Read More: Award Winning Payment Provider of the Year Launches IDO

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.

The Acquisition is being made pursuant to a binding term sheet entered by Mogo and the Vendors on May 31, 2021 and is expected to complete in mid-June 2021. The Acquisition is subject to certain closing conditions customary for a transaction of this nature, including regulatory approval, which includes the approval of the Toronto Stock Exchange.

Read More: Yalo Raises Series C Financing To Strengthen Leadership In Conversational Commerce And Capitalize On WhatsApp’s 2 Billion User Base

Related posts

Durational Capital Management Completes Acquisition of Casper

Fintech News Desk

Axis Bank Enters Into Partnership With OPEN

Fintech Staff Writer

Brown Advisory Adds Portfolio Management Team To Expand Sustainable Fixed Income Capabilities Globally

Fintech News Desk