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Mogo files preliminary prospectus in connection with a public offering of convertible debentures
Mogo files preliminary prospectus in connection with a public offering of convertible debe...
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[{"type":"text","content":"\n\n\n\nMogo files preliminary prospectus in connection with a public offering of convertible debentures\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\n\nCanada NewsWire\nVANCOUVER, May 8, 2017\n\n\n\n/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR RELEASE OVER U.S. NEWSWIRE SERVICES/\n\n\n\nVANCOUVER, May 8, 2017 /CNW/ - Mogo Finance Technology Inc. (TSX: MOGO; OTCQX: MOGOF) (\"Mogo\" or the \"Company\") is pleased to announce that is has filed a preliminary short form prospectus with the securities regulatory authorities in each of the provinces  of Canada (other than Québec) in connection with a commercially reasonable \"best efforts\" public offering (the \"Offering\") of up to $15 million aggregate principal amount of 10% senior secured convertible debentures (the \"Debentures\").  Mackie Research Capital Corporation, Cormark Securities Inc., Canaccord Genuity Inc., Haywood Securities Inc. and M Partners Inc. (the \"Agents\") will act as agents under the Offering.  Mogo will grant the Agents an option (the \"Agent's Option\") exercisable at any time up to to 48 hours prior to the closing of the Offering to increase the size of the Offering by up to 15%, or up to an additional $2.25 million aggregate principal amount of Debentures.\n\nNet proceeds from the Offering will be used to fund the growth of the Company's loan portfolio, with an emphasis on its long-term loan products. The Company's loans are primarily funded using two credit facilities with Fortress Credit Co LLC, with a portion of each loan being funded by the Company.  The net proceeds of the Offering will be used to satisfy such portion of each new loan.  As at March 31, 2017, the Company has available credit of approximately $34 million under these two credit facilities, and the facilities can be expanded in the future to a total borrowing capacity of $250 million, with the consent of the lender.   Some portion of the net proceeds from the Offering may also be used to fund strategic acquisition opportunities in order to accelera...