The company operates a global peer-to-peer non-fungible token trading platform that has generated over US $ 50 million in transaction volume in the past 30 days
Mogo acquires first 25% with fixed price option to increase to 50%
VANCOUVER, British Columbia, January 11, 2022– (BUSINESS WIRE) – Mogo Inc. (NASDAQ: MOGO) (TSX: MOGO) (“Mogo” or the “Company”), a digital payments and financial technology company, today announced a strategic investment in NFT Trader, a Canadian company that operates a secure peer-to-peer OTC trading protocol for non-fungible tokens or NFTs.
NFTs, which are unique digital items that users buy and sell online, use blockchain technology to maintain a digital record of ownership, similar to cryptocurrencies. NFT Trader is an established trading platform for NFTs, working with many popular projects including Bored Ape Yacht Club, Cool Cats, Gutter Cat Gang, and CyberKongz. NFT Trader is built around a decentralized Web3 ecosystem for securely trading digital assets and offers broad support for the interoperable trading of many tokens.
Mogo’s initial investment is through a convertible note which, if converted, will represent a 25% stake in NFT Trader. Mogo also has an option to acquire an additional 25% stake in NFT Trader through a secondary purchase of common stock from the founders within six months of the initial investment. Mogo has the right to appoint a director to the board of directors of NFT Trader and has been granted a pro-rata right for any future offer of securities by NFT Trader, as well as a right of first refusal on any transfer of securities by the founders of NFT Trader.
In addition to supporting the continued growth of the business, over time Mogo plans to work with NFT Trader to navigate the Canadian regulatory landscape by exploring a strategic partnership to bring NFT Trader to Mogo members in Canada.
“The world of finance is changing rapidly and nowhere is this more apparent than what we are seeing with the emergence of Web3, the Metaverse and NFTs,” said David Feller, CEO of Mogo. “The volume of trade for NFTs in 2020 was estimated to be less than $ 100 million and it has increased by around 230 times last year to over $ 23 billion. This is clearly only the start because we are just starting to see a whole new crop of games to win video games where players are rewarded with native cryptocurrency and their characters are NFTs that can be traded. We believe that a financial platform generation will not only bridge the gap between traditional finance and DeFi, but that the merging of the digital and physical worlds will become one of the greatest growth opportunities of all time. “
Investment in NFT Trader joins Mogo’s growing portfolio of digital assets and investments, which totaled approximately $ 150 million1 at the end of the third quarter of 2021 (including Mogo’s book value of its investments in Coinsquare).
1 Includes the estimated fair value of warrants to acquire up to an additional 10% of Coinsquare shares issued and outstanding.
This press release may contain “forward-looking statements” within the meaning of applicable securities laws, including statements comprising statements regarding growth opportunities related to the emergence of Web3, Metaverse and NFTs. Forward-looking statements are necessarily based on a number of estimates and assumptions which, although considered reasonable by management at the time of their 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 differ materially from the estimated future results, performance or achievements expressed or implied by such forward-looking statements and Forward-looking statements are not guarantees of future performance. Mogo’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 beyond Mogo’s control, including obtaining any approval. regulatory requirement. For a description of the risks associated with Mogo’s business, please see the “Risk Factors” section of Mogo’s current annual information form, which is available at www.sedar.com and www.sec.gov. Except as required by law, Mogo disclaims any obligation to update or revise forward-looking statements, whether as a result of new information, events or otherwise.
Mogo offers its nearly 1.8 million members simple digital solutions to improve their finances. Through the free Mogo app, consumers can access a digital spending account with the Mogo Visa * Platinum prepaid card, the only card of its kind in Canada. The MogoCard makes it easy to control spending while doing good for the planet by planting a tree for each purchase. The Mogo app also allows you to easily buy and sell bitcoin, get free monthly credit score monitoring and identity fraud protection, and access personal loans. Mogo’s wholly owned subsidiary, Carta Worldwide, also offers a digital payments platform that powers next-generation card programs from innovative fintech companies in Europe, North America and APAC, while Mogo’s wholly owned subsidiary, Moka, offers automated and fully managed apartments. -investment costs to Canadians from coast to coast. To find out more, visit mogo.ca or download the mobile app (iOS or Android).
See the source version on businesswire.com: https://www.businesswire.com/news/home/20220111005748/en/
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