Mogo Finance Technology (MOGO) Stock: Completes Merger!

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Mogo Finance Technology MOGO Stock News

Mogo Finance Technology Inc (NASDAQ: MOGO) is setting a strong foundation for future growth after announcing the close of the merger with Difference Capital. The merger sets the company on a strong financial foundation, giving Canada’s leading financial app all it needs to bring the business to the next level.

MOGO And Difference Complete Merger

Mogo Finance Technology recently announced that it would be combining its business with Difference Capital. Today, the company announced the closing of the transaction.

Following the merger, MOGO combined its business with Difference Capital, a move the became effective at 12:01 am PDT this morning. The new combined entity is known as Mogo Inc.

As a result of the merger, each common share of MOGO stock, with the exception of those held by Difference Capital, was exchanged for one common share of the combined entity. As of the close of the merger, Mogo shareholders own 80% of the company while Difference Capital shareholders own 20% on a fully diluted basis.

The transaction also comes with a change to the Board of Directors. In fact, the Board of Directors of the combined entity now includes David Feller (Chairman and CEO), Gregory Feller (President and CFO), Michael Wkerie, Minhas Mohamed and Kees Van Winters.

The combined entity will continue to move forward with Mogo’s vision of building the leading fintech platform in Canada. Moreover, the transaction gives the company access to assets that will allow it to grow substantially. As a result of the merger, Mogo now has access to cash and access that have a combined fair market value of about $24 million.

In a statement, David Feller, Founder and CEO at MOGO, had the following to offer:

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.

The above statement was followed up by Greg Feller, President and CFO at Mogo. Here’s what he had to say:

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.

What This Means For Mogo

All in all, this is incredibly positive news for Mogo. First and foremost, the transaction gives the company access to millions in cash and assets. As a result of this funding, the company’s balance sheet has been cleaned up tremendously, giving it the financial strength that it needs in order to generate strong growth for investors.

Moreover, the transaction not only provides financial stability now, but will assist in financial stability in the future. Many of the assets brought to the table by Difference Capital under this transaction are revenue generating, further improving the value of the stock.

Final Thoughts

All in all, this transaction worked out for all parties. However, the big winners are Mogo’s shareholders. With the merger, the financial stability offers a compelling opportunity for the company to see strong growth ahead. Ultimately, this is exactly what investors want to see.

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