Mogo will use the windfall for product development
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A syndicate of underwriters has agreed to acquire 3,750,000 shares of Vancouver-based Mogo Financial Technology for $7 per common share.
The syndicate is co-led by Cormark Securities Inc. and Canaccord Genuity Corp., and includes BMO Capital Markets Corp., Eight Capital and Mackie Research Capital Corp.
The bought deal financing was originally announced Thursday for just over 2 million shares but the revised deal significantly increased the value of the agreement.
The shares will be offered for sale to the public by way of a short form prospectus in each of the provinces of Canada, except Québec.
The aggregate gross value of the bought finance deal agreed is more than $26 million but the underwriters have an option to acquire an additional 562,500 common shares on the same terms. That would bring the total raised to more than $30 million.
Mogo says that the net proceeds of the deal will be used for the development of its next generation digital platform and new product launches, and including working capital and other general corporate purposes.
Sharp growth
Mogo has more than 500,000 members signed up for its MogoAccount mobile-first product which offers access to mortgages, personal loans and prepaid Visa cards.
The company employs 250 people and its Q3 2017 results revealed total revenue of $12.6 million, up 10% from the previous quarter; and a gross profit margin of 68%, up from 60% a year earlier.
“The third quarter represented an important inflection point for Mogo as we delivered more than 60% growth in other product revenue and fees, which highlights the power of Mogo’s digital platform,” said David Feller, Mogo’s Founder and CEO. “As banking continues to undergo a digital transformation, in our view the next generation of consumers will want and expect multiple products in one seamless mobile account.
Adjusted net loss for the quarter ended September 30, 2017 was $4.1 million, a decrease compared with $4.3 million in the second quarter of 2017.
The syndicate is co-led by Cormark Securities Inc. and Canaccord Genuity Corp., and includes BMO Capital Markets Corp., Eight Capital and Mackie Research Capital Corp.
The bought deal financing was originally announced Thursday for just over 2 million shares but the revised deal significantly increased the value of the agreement.
The shares will be offered for sale to the public by way of a short form prospectus in each of the provinces of Canada, except Québec.
The aggregate gross value of the bought finance deal agreed is more than $26 million but the underwriters have an option to acquire an additional 562,500 common shares on the same terms. That would bring the total raised to more than $30 million.
Mogo says that the net proceeds of the deal will be used for the development of its next generation digital platform and new product launches, and including working capital and other general corporate purposes.
Sharp growth
Mogo has more than 500,000 members signed up for its MogoAccount mobile-first product which offers access to mortgages, personal loans and prepaid Visa cards.
The company employs 250 people and its Q3 2017 results revealed total revenue of $12.6 million, up 10% from the previous quarter; and a gross profit margin of 68%, up from 60% a year earlier.
“The third quarter represented an important inflection point for Mogo as we delivered more than 60% growth in other product revenue and fees, which highlights the power of Mogo’s digital platform,” said David Feller, Mogo’s Founder and CEO. “As banking continues to undergo a digital transformation, in our view the next generation of consumers will want and expect multiple products in one seamless mobile account.
Adjusted net loss for the quarter ended September 30, 2017 was $4.1 million, a decrease compared with $4.3 million in the second quarter of 2017.
