Mogo Announces Shareholder Approvals for its Acquisition of Digital Payments Company Carta Worldwide

Mogo Inc. (NASDAQ: MOGO; TSX: MOGO) ("Mogo" or the "Company"), a digital payments and financial technology company empowering the next generation of consumers with innovative financial products including buying and selling of Bitcoin through its mobile app, is pleased to announce that Mogo shareholders and Carta securityholders, at separate meetings held on January 15, 2021, voted to approve the acquisition of Carta Solutions Holding Corporation ("Carta") by Mogo pursuant to a plan of arrangement under section 192 of the Canada Business Corporations Act (the "Transaction").

“We are pleased to have the overwhelming support of shareholders for this transformative transaction,” said David Feller, Chief Executive Officer of Mogo. “We look forward to completing the acquisition later this month and working with the Carta team to take advantage of the massive opportunity in front of us created by the accelerating shift to digital for financial services.”

Carta’s next-generation digital payments platform is the engine behind innovative fintech companies and products around the globe, powering over 100 card programs and providing vital processing technology to industry leaders in Europe and North America.

The Transaction is expected to:

• significantly expand Mogo’s total addressable market by entering the global $2.5 trillion global payments market;
• increase revenue scale and accelerate the growth of its high-margin subscription and transaction-based revenue; and
• strengthen the Company’s digital wallet capabilities which includes the development of its peer-to-peer payment solution planned for 2021.

   

Details of the Transaction are set out in Mogo’s press release and the management information circular (“Circular”), each dated November 27, 2020, which are available under the Company's profile on SEDAR at www.sedar.com.

At the special meeting of shareholders of the Company (the “Meeting”), an ordinary resolution to authorize and approve the issuance of 10,000,000 common shares of the Company, subject to potential downward adjustment based on required minimum working capital and cash positions for Carta, and to ratify and approve the arrangement agreement between Mogo and Carta dated November 17, 2020 setting out the terms and conditions of the Transaction, was approved by 99.78% of the votes cast by Shareholders. The common shares of the Company issued pursuant to the Transaction will not begin to be distributed to individual Carta securityholders, including management, before the earlier of (i) the 10-day volume-weighted average price of the common shares of the Company on the Toronto Stock Exchange being equal to $7.45 per share or higher or (ii) December 2021.