Canadian fintech Mogo Finance Technology announced on Friday it has completed the business combination and formation with Difference Capital. Mogo reported that under the arrangement, it was combined with a wholly-owned subsidiary of Difference and each Mogo common share outstanding immediately prior to the Arrangement, other than Mogo Shares held by Difference, was exchanged for one common share of the Combined Entity.
“Prior to the commencement of the Arrangement, Difference continued from a corporation existing under the Canada Business Corporations Act to a corporation existing under the BCBCA. On completion of the Arrangement, former Mogo shareholders own approximately 80% of the Combined Entity, on a fully diluted basis. In connection with the Arrangement, all of Mogo’s outstanding convertible securities became exercisable or convertible, as the case may be, for shares of the Combined Entity in accordance with the provisions thereof.”
Speaking about the arrangement, David Feller, Mogo’s Founder and CEO, stated:
“We are excited to finalize this transaction, which provides the company with additional resources to continue executing on our vision. Banking is changing, and the future will be dominated by a mobile-first app that makes it easy for consumers to be financially fit. Our team is focused on building out new products and new features to ensure Mogo remains the leader in this rapidly evolving landscape.”
Greg Feller, Mogo’s President and CFO, then added:
“The completion of the Arrangement will strengthen our financial position and represents a significant opportunity to build on our leadership in the Canadian fintech space and create value for shareholders of Mogo Inc. The overwhelming support for this transaction from Difference shareholders underscores the long-term growth potential of Mogo.”
Mogo is a financial health app that empowers consumers with simple solutions to help them manage and control their finances.