Mogo Acquires 20% Stake In Coinsquare For $56.4M
- Mogo Inc. (NASDAQ: MOGO) inked an agreement to acquire a 19.99% stake in Canada’s digital asset trading platform Coinsquare Ltd for $56.4 million.
- The agreement includes an additional acquisition right of a 20% stake in Coinsquare through purchases of shares from current shareholders for a consideration based on pre-money valuation ranging between $250 million and $350 million.
- The investment builds on a multi-year relationship between the two companies as Coinsquare is the trading platform for Mogo’s bitcoin trading service MogoCrypto.
- Mogo will appoint one nominee to Coinsquare’s board, which may increase to two nominees. Coinsquare will be allowed to appoint one nominee to the Mogo’s board.
- The agreement is expected to close by the first quarter of 2021.
- Mogo recently posted a robust bitcoin transaction volume in January. The company had declared preliminary corporate investment plans of up to $1.5 million in bitcoin with further investment plans in 2021 upon the monetization of its $17 million investment portfolio.
- Price action: MOGO shares are up 5.2% at $9.54 on the last check Thursday.
© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.