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).