Coinsquare Announces Closing of Strategic Investment by Mogo
April 16 2021 - 8:15AM
Business Wire
Mogo has acquired a 19.99% ownership interest
in Coinsquare with a right to increase its ownership up to
approximately 43%
All figures in Canadian $
Coinsquare Ltd (“Coinsquare”), Canada’s leading digital asset
trading platform, is pleased to announce the closing of the
previously announced strategic investment in Coinsquare by Mogo
Inc. (NASDAQ:MOGO) (TSX:MOGO), a digital payments and financial
technology company.
Pursuant to the strategic investment agreement (the
“Investment”) between Coinsquare, Mogo and certain shareholders of
Coinsquare (the “Vendors”), Mogo has acquired a 19.99% ownership
interest in Coinsquare for aggregate consideration consisting of a
cash payment of $27.4 million and the issuance of 2,807,577 common
shares of Mogo to Coinsquare and the Vendors. The Investment also
includes rights for Mogo to increase its ownership to up to 43% at
a fixed price, through purchases of shares from current
shareholders and the exercise of warrants under certain conditions.
Mogo’s strategic investment builds on a multi-year relationship
between the two companies. Coinsquare acts as the trading platform
for MogoCrypto, a service Mogo launched in 2018 to allow its
members an easy and convenient way to buy and sell bitcoin.
Commenting on the closing, Stacey Hoisak, CEO of Coinsquare
said: “Mogo’s investment in Coinsquare will drive platform
developments that will enable us to better serve our current
clients and widen access to digital asset investment opportunities
for many more Canadians. We look forward to continuing to provide
Mogo’s expansive client base with a trusted, secure and compliant
platform to manage their digital asset portfolios.”
“With the global crypto market cap now at over $2 trillion,
doubling in just a few months, it’s clear that crypto is not only
the fastest-growing asset class but an increasingly important one
that investors want access to. Coinsquare has built a premier
crypto platform and a leading market position in Canada,” said
David Feller, CEO of Mogo. “By deepening our relationship with
Coinsquare and leveraging their crypto capabilities alongside
Mogo’s broader digital wallet capabilities including our recently
announced transaction with Moka, we believe Mogo is extremely well
positioned to provide Canadians with a leading next-gen wealth
offering.”
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, 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.
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).
Forward-Looking Statements
This news release may contain “forward-looking statements”
within the meaning of applicable securities legislation, including
statements regarding future acquisitions of Coinsquare shares by
Mogo and continued growth of the cryptocurrency market.
Forward-looking statements are necessarily based upon a number of
estimates and assumptions that, while considered reasonable by
management at the time of preparation, are inherently subject to
significant business, economic and competitive uncertainties and
contingencies, and may prove to be incorrect. Forward-looking
statements involve known and unknown risks, uncertainties and other
factors that may cause actual financial results, performance or
achievements to be materially different from the estimated future
results, performance or achievements expressed or implied by those
forward-looking statements and the forward-looking statements are
not guarantees of future performance. Coinsquare’s growth, its
ability to expand into new products and markets and its
expectations for its future financial performance are subject to a
number of conditions, many of which are outside of Coinsquare’s
control. Except as required by law, Coinsquare disclaims any
obligation to update or revise any forward-looking statements,
whether as a result of new information, events or otherwise.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210416005293/en/
Coinsquare Media Contacts Michele McDermott-Fox David
Lewis pr@thetopflooragency.com (905) 379-1893
Mogo (NASDAQ:MOGO)
Historical Stock Chart
From Nov 2024 to Dec 2024
Mogo (NASDAQ:MOGO)
Historical Stock Chart
From Dec 2023 to Dec 2024