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Coinsquare announces closing of strategic investment by Mogo
On April 16, 2021, Coinsquare Ltd., Canada's leading digital asset trading platform, announced the closing of the previously announced strategic investment in Coinsquare by Mogo Inc., a TSX and NASDAQ-listed 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 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%, 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.
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.
Gowling WLG advised Coinsquare with respect to this investment with a team that included Peter Simeon, Warren Cass, Adam Sherman, Marcus Hinkley and Taylor Hanson (corporate) and Paul Carenza and Anita Yuk (tax).
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