Mogo Closes Acquisition of Additional Shares in Coinsquare Mogo Inc. (NASDAQ:MOGO) (TSX:MOGO) (“Mogo” or the “Company”), a digital payments and financial technology company, today announced that it has closed its previously announced acquisition (the “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.
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.
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.
About Coinsquare
Since 2014 Coinsquare has provided digital asset traders a proprietary trading platform engineered to deliver a robust, secure, and intelligent interface for trading Bitcoin, Ethereum, Litecoin and other digital assets. Coinsquare’s products and services also include Coinsquare Wealth for qualified individuals and institutions. Our Wealth service provides customers with an OTC desk featuring institutional grade liquidity, dedicated account management from one of our experienced Account Directors, and a suite of other investment products focused on digital assets. For more information and terms and conditions visit https://coinsquare.com/
About Mogo
Mogo is empowering its more than one million members with simple digital solutions to help them get in control of their financial health. Through the Mogo app, consumers can access a digital spending account with Mogo Visa* Platinum Prepaid Card featuring automatic carbon offsetting, easily buy and sell bitcoin, and get free monthly credit score monitoring, ID fraud protection, and personal loans. Mogo’s wholly-owned subsidiary, Carta Worldwide, also offers a digital payments platform that powers the next-generation card programs from innovative fintech companies in Europe, North America and APAC. To learn more, please visit mogo.ca or download the mobile app (iOS or Android).