Agreement allows Mogo to further establish
itself as the go-to financial app for millennials to improve their
financial health
VANCOUVER, Feb. 6, 2020 /CNW/ - Mogo
Inc. (TSX:MOGO) (NASDAQ:MOGO) ("Mogo" or the "Company"),
one of Canada's leading financial
technology companies, today announced that it has extended the term
of its marketing collaboration agreement with Postmedia Network
Inc. ("Postmedia"), which will provide over $15,000,000 of annual media value for the next 3
years. The agreement is now extended until January 2023.
Postmedia is a Canadian news media company representing more
than 140 brands, including the National Post, Toronto Sun and Vancouver Sun, across multiple print, online,
and mobile platforms. Postmedia reaches 19.6 million Canadians each
month across its platforms, including 13.8 million adults through
mobile properties.
"Our innovative marketing agreement with Postmedia has been
instrumental in building our brand and member base in a highly
efficient way," said Greg Feller,
President & CFO of Mogo. "We are pleased to deepen and extend
this relationship and look forward to leveraging this unique asset
to drive awareness of new product launches and reinforce Mogo's
unique value proposition focused on helping Canadians improve their
financial health and lead a more sustainable lifestyle."
The extended agreement provides for Mogo to receive a similar
minimum annual media value from Postmedia to the original agreement
while Postmedia will receive a similar quarterly payment to the
previous agreement through a combination of: 1) a quarterly fixed
cash payment, and; 2) commissions related to Mogo's digital
performance spend, which will now be managed by Postmedia's digital
division. In addition, Mogo agreed to issue to Postmedia 5-year
warrants to acquire 350,000 common shares of Mogo at an exercise
price of $3.537 (equal to the 60-day
VWAP of the Mogo shares on the Toronto Stock Exchange ("TSX")),
which will vest in equal instalments over three years. Mogo
also agreed to extend the term of 50% of the warrants
previously issued to Postmedia from January
25, 2021 to January 25,
2023. Issuance of the 350,000 warrants and the two year
extension of the term of the existing warrants are subject to TSX
approval.
Note: All dollar amounts are expressed in Canadian dollars
unless otherwise specified.
About Mogo
Mogo — a financial technology company —
offers a finance app that empowers consumers with simple solutions
to help them get in control of their financial wellness. Financial
wellness continues to be the #1 source of stress across all
demographics and highest among millennials. At Mogo, users can sign
up for a free account in only three minutes and begin to learn the
4 habits of financial health and get convenient access to products
that can help them achieve their financial goals. The Mogo platform
has been purpose-built to deliver a best-in-class digital
experience, with best-in-class products all through one account.
With more than one million members and a marketing partnership with
Canada's largest news media
company, Mogo continues to execute on its vision of becoming the
go-to financial app for the next generation of Canadians. To learn
more, please visit mogo.ca or download the mobile app
(iOS or Android).
Forward-Looking Statements
This news release may
contain "forward-looking statements" within the meaning of
applicable securities legislation, including statements regarding
new product launches and receipt of TSX approval. Forward-looking
statements are necessarily based upon a number of estimates and
assumptions that, while considered reasonable by management, are
inherently subject to significant business, economic and
competitive uncertainties and contingencies. Forward-looking
statements involve known and unknown risks, uncertainties and other
factors that may cause actual financial results, performance or
achievements to be materially different from the estimated future
results, performance or achievements expressed or implied by those
forward-looking statements and the forward-looking statements are
not guarantees of future performance. For a description of the
risks associated with Mogo's business please refer to 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 any forward-looking statements,
whether as a result of new information, events or
otherwise.
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content:http://www.prnewswire.com/news-releases/mogo-extends-innovative-marketing-agreement-with-postmedia-to-2023-301000310.html
SOURCE Mogo Inc.