By Sam Boughedda
Investing.com — Mogo Inc (NASDAQ:MOGO) shares are down 17% to $3.87 Thursday morning after it said it has entered into agreements with certain institutional investors for the sale of 6.1 million shares and warrants to purchase up to 3.1 million shares for $4.50 per unit.
The financial technology, digital payments and crypto company said it expects to raise approximately $27.5 million from the direct offering.
Each warrant entitles the holder to purchase one share of Mogo for $4.70 a share and it will be exercisable six months following issuance, with a term of 36 months following the exercise date.
Mogo intends to use the money raised for working capital purposes and "potential future acquisitions of or investments in synergistic or strategic businesses," which may include the exercise of warrants it currently holds and the acquisition of and investments in crypto businesses.
Last month, Mogo announced a minority investment in Gemini, a crypto exchange founded by the Winklevoss twins, who amassed a fortune through Bitcoin.