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Mogo Forms Three-Year Lending Partnership with goeasy Ltd. and Announces Sale of $31.9 million Liquid Loan Portfolio
Mogo Forms Three-Year Lending Partnership with goeasy Ltd. and Announces Sale of $31.9 mil...
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[{"type":"text","content":"\n\n\n\nMogo Forms Three-Year Lending Partnership with goeasy Ltd. and Announces Sale of $31.9 million Liquid Loan Portfolio\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\n\n\n\n\n\n\nCanada NewsWire\nVANCOUVER, Feb. 28, 2020\n\n\n\nVANCOUVER, Feb. 28, 2020 /CNW/ - Mogo Inc. (TSX:MOGO) (NASDAQ:MOGO) (\"Mogo\" or the \"Company\"), one of Canada's leading financial technology companies, today announced a three-year lending partnership with goeasy Ltd. (TSX:GSY) (\"goeasy\"), as well as the sale of the majority of its MogoLiquid loan portfolio (\"MogoLiquid Portfolio\") to goeasy, consistent with Mogo's strategic plan to reduce its on balance sheet lending and focus on leveraging its proprietary digital lending platform to originate loans for key partners. \n\n \n \n\n \nThe lending partnership builds on a successful pilot program with goeasy, which commenced in October 2019. Through Mogo's digital platform, consumers can quickly download the Mogo app, get a no-obligation pre-approval (for up to $35,000 with terms of up to 5 years), customize their loan, and complete the loan agreement all in minutes. Once approved, certain Mogo members will have their loan funded by goeasy's operating division, easyfinancial, a leading provider of unsecured and secured non-prime consumer loans. Loan customers will continue to manage their loan through the Mogo app. Mogo will receive compensation from easyfinancial for any loans funded by easyfinancial, while easyfinancial will have ownership of these loans. The partnership allows Mogo to generate additional fee-based subscription & services revenue.\nIn addition to the lending partnership, the companies announced that goeasy has acquired the MogoLiquid Portfolio for total gross consideration of $31.9 million. Mogo will also be eligible for an additional performance-based payment of up to $1.5 million over the term of the agreement upon achieving certain agreed-upon annual origination amounts under the lending partnership.  \nThe proceeds of the sale will be used to repay one of Mogo's credit facilities which has an outstanding balance...