MOGO - Mogo plunges on plans to raise $27.5M in stock offering
Mogo (NASDAQ:MOGO) trades 18.1% down premarket after it entered into definitive agreements with certain institutional investors for the sale of 6.1M shares and warrants to purchase up to 3.1M shares at purchase price of $4.5/unit in a registered direct offering. Gross proceeds are expected to be ~$27.5M. Offering is expected to close on or about Dec.13. Each warrant holder is entitled to acquire one share at $4.7/share and will be exercisable 6 months post issuance, and has a term of 3 years after the initial exercise date. Net proceeds will be used for working capital purposes and for potential future acquisitions of or investments in synergistic or strategic businesses, including the exercise of warrants currently held by Mogo and the acquisition of and/or investments in businesses in the cryptocurrency space.
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Mogo plunges on plans to raise $27.5M in stock offering