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.
