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Mogo Finance Technology upsizes bought-deal financing following strong demand, bitcoin interest


CryptocurrencyAfter a run that has seen the company become one of the top performing tech stocks on the TSX this year, fintech player Mogo Finance Technologies (Mogo Finance Technology Stock Quote, Chart, News: TSX:MOGO) is ending 2018 with strong demand for its shares.

The company yesterday announced it will increase the size of its previously announced bought-deal financing from just over $15-million to $26,25-million. A greenshoe option could push the financing to $30.18-million.

The announcement came after the stock was halted late in the trading day on Thursday.

The financing is led by Cormark, with a syndicate consisting of Canaccord Genuity, BMO, Eight Capital and Mackie Research participating.

Investors have reacted favourably to recent news from the Vancouver-based fintech, including an initiative to protect customers against identity fraud, an announcement that the former head of PayPal Canada, Darrell MacMullin, would join the company as an advisor, and that Mogo would integrate Bitcoin and other cryptocurrencies into its digital account and plans to introduce new products and features based on blockchain technology.

“It’s hard to overstate how disruptive and transformative blockchain technology can be for banking, as it enables a faster, more secure and trusted way to transfer data. In fact, many believe that blockchain will be as disruptive to the financial system as the internet was to the media industry,” said CEO David Feller of the inititative. “Developing new products and features based on blockchain technology and cryptocurrencies is a natural extension for Mogo as we continue to build a digital banking experience for the next generation of consumers.

The financing comes on the heels of a run that had approximately quadrupled the price of Mogo, from near the two-dollar mark to an eight dollar close on Wednesday.

Mogo says proceeds of the financing will be used to build out a next-gen digital platform, for new products, and for general working capital.

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About The Author /

Cantech Letter founder and editor Nick Waddell has lived in five Canadian provinces and is proud of his country's often overlooked contributions to the world of science and technology. Waddell takes a regular shift on the Canadian media circuit, making appearances on CTV, CBC and BNN, and contributing to publications such as Canadian Business and Business Insider.
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