MOGO - Mogo stock dips after agreement to buy investment dealer for cash and stock

Mogo (MOGO) falls 3.1% in premarket trading after the company agrees to acquire Fortification Capital, a Canadian registered investment dealer, in a deal valued at ~US$1.61M, based on Mogo's closing stock price on May 14.Through the transaction, Mogo would acquire the necessary licenses, registration and technology —  including an order management system and market data processing — to accelerate the development of its planned commission-free stock trading solution.Under the binding letter-of-intent, Mogo would pay C$500K (~US$413K) in cash, 75K MOGO shares, and cash equal to the working capital of Fortification plus repayment of the subordinated debt owed to Fortification's sole shareholder at the time of closing, anticipated to be ~C$550K.The deal follows Mogo's agreement to boost its stake in Coinsquare, a digital asset trading platform in Canada.

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Mogo stock dips after agreement to buy investment dealer for cash and stock