On January 25, 2016, Mogo Finance Technology Inc. (Mogo) completed the negotiation of its ground-breaking strategic marketing collaboration with Postmedia Network Inc. (Postmedia).
Mogo launched its first online loan product in 2006. Since that time, Mogo has become the leading online lender in Canada, with over 1 million loans originated.
The company is listed on the TSX under the symbol “GO.”
Postmedia Network Inc., a wholly owned subsidiary of Postmedia Network Canada Corp. is a Canadian newsmedia company representing more than 200 brands across multiple print, online, and mobile platforms.
Postmedia is listed on the TSX under the symbols “PNC.A, PNC.B.”
Under the arrangement, Postmedia will provide Mogo with a minimum of $50 million in media value over a three year period and in return, Mogo will provide Postmedia with a revenue sharing payment equal to 4 per cent of Mogo’s current revenues and 11 per cent of Mogo’s incremental revenues over the three year period.
Mogo also issued a warrant to Postmedia entitling it to acquire 1,196,120 common shares of Mogo (equal to 6 per cent of Mogo’s outstanding shares calculated on a fully-diluted basis) at a price of $2.96 per share.
Fifty per cent of the warrants vest in equal instalments over three years and the other fifty per cent vest in three equal instalments based on Mogo achieving certain quarterly revenue targets.
Mogo was represented in-house by Lisa Skakun, Chief Administrative and Legal Officer, and by John Anderson and Victor Gerchikov of Stikeman Elliott LLP.
Postmedia was represented in-house by Jeffrey Haar, Executive Vice President, Legal and General Counsel, and Megan O’Toole, Director, Legal Affairs, by Randy Taylor of LaBarge Weinstein LLP, and by Michael Macaulay and Euan Sinclair of Lawson Lundell LLP.