Mogo Reports First Quarter 2021 Financial Results - Seite 2

• Significantly strengthened balance sheet to pursue organic and acquisitive growth.
  • During Q1 2021, Mogo raised approximately $87.5 million of net cash proceeds and at quarter end, had approximately $121 million in combined cash and investments (up from $30.6 million at the end of Q4 2020).
  • Completed early conversion of convertible debentures, resulting in reduced interest expense going forward.
  • Consistent with plans to increase its on balance sheet investment in the blockchain and fintech ecosystem, Mogo acquired approximately 18 bitcoins to date in open market transactions at an average price of US$33,083. In May 2021, the Company also purchased approximately 146 units of Ether at an average price of US$2,777.
  • In April 2021, Mogo sold its investment in Vena Solutions for proceeds of $4.7 million, a 116% increase from the book value as at December 31, 2020.

Business & Operations Highlights

• Net member additions of approximately 70,000, up 35% from Q4 2020; total members reached 1,195,000 members at quarter end.
  • Following the closing of the acquisition of Moka Financial Technologies Inc. (“Moka”), Mogo’s member base now sits at approximately 1.6 million.
• MogoCrypto trading volume was up over 1,500% year-over-year
• MogoCard transaction volume was up over 1,000% year over year

Strategic Initiatives & Subsequent Events

• In January 2021, closed the acquisition of Carta Solutions Holding Corporation (“Carta”), a leader in digital payment solutions. The acquisition adds a next-generation business to business payments platform and significantly expands Mogo’s total addressable market.
• In April 2021, completed an initial strategic investment in Coinsquare Ltd. (“Coinsquare”), Canada’s leading digital asset trading platform, acquiring 19.99% ownership of Coinsquare’s outstanding common shares.
  • Concurrent with its Q1 2021 results, Mogo also announced that it intends to increase its ownership position in Coinsquare from 19.99% to approximately 37% through the acquisition of an additional 5.4 million common shares of Coinsquare through a secondary transaction with an existing shareholder and by exercising a portion of its rights under the original investment agreement. Mogo also holds a purchase warrant in Coinsquare that, if and when exercised, would increase its total ownership interest to approximately 48%.
• In May 2021, completed the all-stock acquisition of Moka, one of Canada's leading saving and investing apps. The acquisition expands Mogo’s wealth offering to include saving and investing products and will accelerate Mogo’s plan to launch a free stock trading solution for Canadians in 2021.
• Announced a new partnership to provide MogoMembers with exclusive access to crypto and other equity research from FSInsight LLC, a market-leading, independent research firm that is a division of Fundstrat Global Advisors. Under the agreement, Mogo will be the exclusive distributor bringing FSI’s research to Canada’s retail investor market.

Financial Outlook