Postmedia strikes new type of promotional deal with Mogo Finance Technology
Posted January 25, 2016 6:05 am.
Last Updated January 25, 2016 6:40 am.
This article is more than 5 years old.
TORONTO – Mogo Finance Technology Inc. has signed a three-year agreement to get at least $50 million of promotional commitments from Postmedia, which will get a percentage of Mogo’s revenue and rights to buy stock in the Vancouver-based company.
The joint announcement sees Mogo tapping into Postmedia’s print, online and mobile platforms including the National Post newspaper, Toronto Sun, Ottawa Citizen and Vancouver Sun and their digital affiliates.
Mogo will pay Postmedia the equivalent of four per cent of its existing revenue and 11 per cent of incremental revenue, subject to certain adjustments.
Mogo has also issued Postmedia rights to buy up to about 1.2 million common shares of Mogo in stages within five years for $2.96 per share (TSX:GO).
Based on Mogo’s stock price on the Torotno Stock Exchange as of Friday, the fintech company is worth a total of just under $52 million based on shares worth $2.86 each. The shares began trading publicly on June 30 at $9.
“It is quite well-known that the traditional media industry is significantly disrupted,” Andrew MacLeod, Postmedia’s chief commercial officer, said today.
“Our strategic collaboration with Mogo is exactly the type of innovation that can accelerate both companies’ business objectives — to amplify Mogo’s customer acquisition goals, brand awareness and new product promotion and Postmedia’s development of innovative monetization strategies.”
