Mogo Completes Strategic Investment in Crypto Platform, Coinsquare - Seite 2

Greg Feller, President of Mogo, added: “In addition to giving Mogo shareholders a significant stake in a highly strategic and valuable platform in the Canadian fintech ecosystem, along with rights to significantly increase our ownership stake going forward, the Coinsquare investment provides additional leverage to one of the most exciting and fastest-growing sectors in fintech.”

Jason Theofilos, Board Member of Coinsquare, commented: “We’re excited to deepen our relationship with Canada’s leading fintech company. By leveraging Mogo’s digital wallet capabilities and base of more than one million members, combined with our deep crypto trading capabilities, we see significant opportunities to accelerate the growth of both businesses.”

Coinsquare continues to actively work with the Canadian regulators to achieve IIROC membership and regulated marketplace status. On March 29, 2021, the Joint CSA/IIROC Staff Notice 21-329 – Guidance for Crypto-Asset Trading Platforms: Compliance with Regulatory Requirements was released which envisages crypto asset platforms becoming fully regulated. Coinsquare’s subsidiary, Coinsquare Capital Markets Ltd., filed its application to operate as a marketplace and dealer in November of 2020.

Pursuant to the terms of the previously announced Investment, Mogo has acquired 19.99% of the outstanding common shares of Coinsquare (the “Coinsquare Shares”) on a post-transaction basis by way of treasury issuance from Coinsquare and purchases of Coinsquare Shares from the Vendors. As part of the transaction, Mogo also has a 12-month call option to acquire from the Vendors an additional 10% of the outstanding Coinsquare Shares at a fixed price, along with an 18-month warrant which would increase its total ownership interest to over 40% in the event that both the option and warrant are fully exercised. Separately, the Vendors have a put right for 10% of the outstanding Coinsquare Shares that may be exercised under certain conditions within 6 to 13 months of today’s closing. The put right will be void if Mogo exercises the call option and vice versa. One half of the Mogo Shares issued as consideration to Coinsquare and the Vendors are subject to a 30-day contractual escrow period from today's date.