VANCOUVER, British Columbia--(BUSINESS WIRE)--Mogo Inc. (NASDAQ:MOGO) (TSX:MOGO) (“Mogo” or the “Company”), a digital wealth and payments business, today announced a new strategic partnership with Postmedia Network Inc. (“Postmedia”), a Canadian news media company representing more than 130 brands across multiple print, online, and mobile platforms, to launch a new content channel with news and information on wealth-building. The channel will be aimed at educating Canadians on how to invest, accumulate wealth, and manage it effectively to achieve their financial goals, addressing a gap in the availability of quality educational content from existing financial services providers. According to the J.D. Power 2023 Canada Retail Banking Advice Satisfaction Study, “Investment and retirement advice is the most frequent type of advice both desired and received by bank customers and interest for this topic is on the rise”1.
With a joint focus on educating current and future investors, Postmedia is establishing a new digital channel on the Financial Post platform, with distribution extending to other Postmedia properties. Postmedia reaches approximately 17.8 million Canadians each month across its platforms. Postmedia will independently operate the channel with Mogo as its founding sponsor. Mogo will also contribute its own branded educational content and tools on wealth-building, including its patent-pending wealth calculator.
“It’s clear that the vast majority of Canadians are nowhere close to being on the right path to achieving financial freedom. In fact, recent surveys show that 75% of pre-retirees between the ages of 55-65 have less than $100,000 saved versus the $1.7 million estimated average Canadians believe they need to retire2,” said Dave Feller, Founder & CEO of Mogo. “A big part of the problem comes down to the products that many Canadians find themselves in like high-fee underperforming mutual funds, when the data clearly shows that they would be far better off investing in low-cost ETFs such as those that track the S&P 500. There’s an estimated $2 trillion sitting in these mutual funds today, and assuming an average of about 2%, that’s $40 billion a year in fees that could be going towards Canadians wealth building. The right educational content is going to be a key driver of disrupting the status quo, and helping all Canadians get on a much better path. We couldn’t think of a better organization to partner with than Postmedia, as they have always been a leader in this area, especially through properties like the Financial Post.”
“This new initiative reinforces Postmedia’s longstanding commitment to bringing Canadians high-value editorial and content so they can understand the economy, the financial markets, and the investment solutions and strategies available to them,” said Erika Tustin, Vice President, Content Monetization, Postmedia. “We’re excited to partner with a company like Mogo to help deliver on this commitment and create unique content that brings value to our readers, subscribers and customers.”
“We’re very pleased to be renewing our long-running partnership with Mogo as part of this unique initiative,” said Andrew MacLeod, President and Chief Executive Officer, Postmedia. “This new channel represents the perfect alignment between Mogo’s vision for the future and Postmedia’s commitment to delivering indispensable, trusted content to Canadians.”
Under the new agreement, Mogo will issue 500,000 warrants to Postmedia, each such warrant entitling Postmedia to acquire one Mogo share at a price of $2.15 for a period of three years from the date of issue. Issuance of the warrants is subject to TSX approval.
About Mogo
Mogo Inc. (NASDAQ:MOGO; TSX:MOGO) is a digital wealth and payments company headquartered in Vancouver, Canada with more than 2 million members, $9.9B in annual payments volume and a ~13% equity stake in Canada’s leading Crypto Exchange WonderFi (TSX:WNDR). Mogo offers simple digital solutions to help its members dramatically improve their path to wealth-creation and financial freedom. MOGO offers commission-free stock trading that helps users thoughtfully invest based on a Warren Buffett approach to long-term investing – while also making a positive impact with every investment. Moka offers Canadians a real alternative to mutual funds and wealth managers that overcharge and underperform with a fully managed investing solution based on the proven outperformance of an S&P 500 strategy, and at a fraction of the cost. Through its wholly owned digital payments subsidiary, Carta Worldwide, Mogo also offers a low-cost payments platform that powers next-generation card programs for companies across Europe and Canada. The Company, which was founded in 2003, has approximately 200 employees across its offices in Vancouver, Toronto, London & Casablanca.
1) 2023 Canada Retail Banking Advice Satisfaction Study | J.D. Power (jdpower.com)
2) https://newsroom.bmo.com/2023-02-07-BMO-Annual-Retirement-Study-Canadians-Believe-They-Need-1-7M-to-Retire-Up-20-Per-Cent-from-2020
Forward-Looking Statements
This news release may contain "forward-looking statements" within the meaning of applicable securities legislation, including statements regarding the launch a new content channel on Postmedia’s platform, and receipt of TSX approval for the issuance of 500,000 warrants to Postmedia. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management at the time of preparation, are inherently subject to significant business, economic and competitive uncertainties and contingencies, and may prove to be incorrect. Forward-looking statements are typically identified by words such as "may", "will", "could", "would", "anticipate", "believe", "expect", "intend", "potential", "estimate", "budget", "scheduled", "plans", "planned", "forecasts", "goals" and similar expressions. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual financial results, performance or achievements to be materially different from the estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. Mogo’s growth, its ability to expand into new products and markets and its expectations for its future financial performance are subject to a number of conditions, many of which are outside of Mogo’s control. For a description of the risks associated with Mogo’s business please refer to the “Risk Factors” section of Mogo’s current annual information form, which is available at www.sedarplus.com and www.sec.gov. Except as required by law, Mogo disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise.
