Mogo Stock (MOGO): Why The Price Substantially Dropped

By Amit Chowdhry ● Dec 9, 2021
  • The stock price of Mogo Inc (NASDAQ: MOGO) fell by 15.96% today. This is why it happened.

The stock price of Mogo Inc (NASDAQ: MOGO) – a financial technology, digital payments, and crypto company – fell by 15.96% today. Investors are responding negatively to Mogo announcing today that it has entered into definitive agreements with certain institutional investors for the sale of an aggregate of 6,111,112 common shares and warrants to purchase up to an aggregate of 3,055,556 common shares (each whole warrant, a warrant, and each common share and one-half of one Warrant, a unit), at a purchase price of US$4.50 per unit, in a registered direct offering (the offering). 

The aggregate gross proceeds to Mogo are expected to be about US$27.5 million, before deducting the placement agent’s fees and expenses of the offering payable by the company. The offering is expected to close on or about December 13, 2021, subject to satisfaction of customary closing conditions.

Each warrant will entitle its holder to acquire one common share of the company (each, a warrant share) at an exercise price of US$4.70 per share, will be exercisable six months following issuance, and has a term of 36 months following the initial exercise date.

The company plans to use the net proceeds from the offering for working capital purposes and for potential future acquisitions of or investments in synergistic or strategic businesses, including (but not limited to) the exercise of warrants currently held by Mogo and the acquisition of and/or investments in businesses in the cryptocurrency space.

H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering.

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.