Leveraging the power of Postmedia's more than 200 trusted brands, audience reach of 12.8 million average monthly unique visitors to its digital properties and 8.3 million weekly print readership, to supercharge awareness of Mogo: Canada's leading digital financial brand for millennials
VANCOUVER, Jan. 25, 2016 /CNW/ - Mogo Finance Technology Inc., ("Mogo") Canada's leading digital financial brand, today announced a strategic Marketing Collaboration Agreement ("the Agreement") with Postmedia Network Inc. ("Postmedia"), a Canadian newsmedia company representing more than 200 brands across multiple print, online and mobile platforms.
Under the Agreement, the companies will collaborate to market Mogo's current suite of products including MogoMoney loans up to $35,000, the Mogo Platinum Prepaid Visa® Card and new product launches such as the upcoming debut of MogoMortgage. These products will be marketed nationally through Postmedia's more than 200 trusted brands including National Post, Financial Post, Toronto Sun, Vancouver Sun, Ottawa Citizen, Calgary Herald, 24hrs newspapers and destination websites including Canada.com, driving.ca, and canoe.com. This innovative Agreement includes media promotional commitments of at least $50 million which will significantly increase Mogo's brand awareness and reach across Canada. The Agreement also provides Postmedia with revenue sharing and equity participation through warrants in Mogo.
"We're excited to be a part of the transformation happening in media through this strategic relationship with Postmedia," said Dave Feller, Mogo's Founder & CEO. "There's a broader digital transformation happening across many industries as consumers, led by millennials, manage much of their lives through their mobile phones. Financial services is at the early stages of its own disruption, as millennials search for a more convenient and fully digital banking experience. We believe Mogo is positioned at the heart of this disruption as we continue to build out our digital offering and a financial brand for millennials."
"In a sea of online content, trusted and credible news sources like Postmedia are becoming more and more important to all consumers" said Feller. "We believe that with Postmedia's massive audience reach across its more than 200 trusted brands, we have the opportunity to dramatically accelerate our quest to build Mogo into the leading digital financial brand within Canada's multi-trillion dollar financial services industry."
Greg Feller, Mogo's President & CFO added: "As we move the business toward profitability, this agreement allows us to expand our marketing scale and reach while significantly reducing and de-risking one of our largest expense items. This innovative strategic partnership which includes both incentive based revenue sharing, along with equity participation in the form of warrants, truly aligns Postmedia to help us not only grow our revenue but also build long term shareholder value."
The agreement provides Mogo access to a much broader and highly valuable customer base and leverages Postmedia's expertise in marketing program development including legacy print solutions, content-based marketing services, on and off network advertising programs, best-in-class programmatic solutions and other promotional development opportunities.
"It is quite well known that the traditional media industry is significantly disrupted," said Andrew MacLeod, Chief Commercial Officer, Postmedia. "The conundrum is that we have never had more audience while at the same time we have never been more challenged to monetize it. Our strategic collaboration with Mogo is exactly the type of innovation that can accelerate both companies' business objectives – to amplify Mogo's customer acquisition goals, brand awareness and new product promotion and Postmedia's development of innovative monetization strategies."
"We are on a transformative journey at Postmedia and this strategic collaboration with Mogo represents one important step forward that could be replicated in other sectors," said Paul Godfrey, Postmedia's President and CEO. "Because of the innovative structure of this agreement our interests are aligned and Postmedia shares in Mogo's success. We are highly motivated to accelerate their growth. We are thrilled to be teaming up with one of the leaders in Canada's emerging fintech sector."
- Three-year agreement; option to renew for additional two years with mutual agreement.
- Over the next three years, Postmedia will provide a minimum of $50 million of media value based on rates negotiated between the parties.
- During the term of the Agreement, Mogo will pay Postmedia a performance based revenue share equal to 4% of its existing revenues and 11% of its incremental revenues, subject to certain adjustments in accordance with the terms and conditions of the Agreement.
- Mogo has issued to Postmedia five year warrants to acquire 1,196,120 common shares of Mogo at an exercise price of $2.96 (equal to the 5 day VWAP of the Mogo shares on the TSX). Fifty percent of the warrants vest in equal instalments over three years and the other fifty percent vest in three equal instalments based on achieving certain quarterly revenue targets.
Note: All dollar amounts are expressed in Canadian dollars unless otherwise specified.
Mogo (TSX: GO) is a digital financial brand focused on leveraging technology to bring a new level of convenience, simplicity and value to consumer financial services. With over 150,000 members, we are leading the shift in Canada as consumers begin to move away from traditional banking services towards a fully digital experience. We're disrupting financial services by giving Canadians convenient and controlled access to a range of financial products including personal loans, a free Prepaid Visa® Card, and other tools that help Canadian consumers get out of debt, spend responsibly and stay in control of their financial health. Our vision is to build the leading digital financial brand for millennials that empowers them with simple financial solutions. To learn more about Mogo – recently referred to as the potential "Uber of banking" by CNBC – visit mogo.ca
About Postmedia Network Inc.
Postmedia Network Inc., a wholly owned subsidiary of Postmedia Network Canada Corp. (TSX:PNC.A, PNC.B), is a Canadian newsmedia company representing more than 200 brands across multiple print, online, and mobile platforms. Award-winning journalists and innovative product development teams bring engaging content to millions of people every week whenever and wherever they want it. This exceptional content, reach and scope offers advertisers and marketers compelling solutions to effectively reach target audiences. For more information, visitwww.postmedia.com.
This news release contains "forward-looking statements" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements regarding the future growth of Mogo's business, its intention to invest in its technology platform, and to expand into other products and markets, the success of the strategic collaboration for both companies, Postmedia's ability to replicate this type of strategic collaboration with other advertisers in other sectors and Postmedia's revenue potential from the relationship. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management of the relevant company, are inherently subject to significant business, economic and competitive uncertainties and contingencies. 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 invest in its platform and expand into new products and markets are subject to a number of conditions, many of which are outside of Mogo's control. For a description of the risks associated with these forward looking statements and Mogo's business generally, please refer to MD&A for the quarter ended September 30, 2015 and the long form prospectus dated June 18, 2015, both of which are available atwww.sedar.com. For a complete list of Postmedia's risk factors please refer to the section entitled "Risk Factors" contained in Postmedia Network Canada Corp.'s annual management's discussion and analysis for the years ended August 31, 2015, 2014 and 2013, which can be found on the Company's website at www.postmedia.com, on SEDAR at www.sedar.com or on the SEC's website at www.sec.gov. Except as required by law, both companies disclaim any obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise.
SOURCE Mogo Finance Technology Inc
For further information: Mogo Investors: Craig Armitage, Investor Relations, [email protected], (416) 347-8954; Alex Langer, Capital Markets, [email protected], (604)765-1604; Mogo Media: Marci Hotsenpiller, [email protected], (250) 650-6524; Postmedia: Phyllise Gelfand, Vice President of Communications, [email protected], (416) 442-2936