Mogo Inc. [NASDAQ: MOGO] disclosed that it has inked an agreement with a prominent cryptocurrency platform of Canada to purchase additional shares. As per the agreement, Mogo will purchase an extra 2.0% of the outstanding common shares of Coinsquare from Michael Diamond and an associated firm.
Furthermore, Mogo will also have a choice to acquire an extra 3.4% of the outstanding Coinsquare Shares from the Vendors within 120 days from the closure date of the purchase under the same terms, depending on certain conditions. Since its inception in 2014, Coinsquare has gained recognition as the top cryptocurrency platform in Canada. Coinsquare continues to experience quick growth in assets, revenue, and operating profitability.
Furthermore, as per the acquisition agreement, the buying option will include the application of the Option, merged with Mogo’s current ownership of Coinsquare, the earlier disclosed buying of an extra 5.4 million Coinsquare Shares. It also includes the application of Mogo’s current buying warrant in Coinsquare. It would grow Mogo’s total ownership in Coinsquare to nearly 53%.
The buying agreement has been carried out in compliance with the provisions of a binding term sheet. The term sheet was started by Mogo and the Vendors on May 31, 2021. The agreement is anticipated to execute in mid-June 2021. The Acquisition is dependent on certain execution conditions traditional for a deal of this kind. The stipulations cover the supervisory clearance, which includes the clearance of the Toronto Stock Exchange.