Mogo holders approve amendments to 10% convertible debentures, extend maturity

By Rebecca Melvin

New York, May 26 – Holders of Mogo Inc.’s 10% convertible senior secured debentures passed proposed amendments to the indentures including extension of the maturity date to May 31, 2022, according to a company release.

The notes had been set to mature on May 31, 2020.

In all, 94% of the debenture holders voted in favor of the extraordinary resolution, with more than 78% of the outstanding aggregate principal amount of debentures being voted at the meeting on Friday.

The amendments also reduce the conversion price of the principal by 45% to $2.75 per common share from $5.00 per common share. Previously, the company had proposed reducing the conversion price to $3.50 per common share.

The company also proposed to establish a minimum price at which common shares may be issued to repay the principal amount of the convertible debentures at maturity.

In addition the amendments increase the frequency of interest payments to quarterly from semiannually, increase the early conversion trigger to 125% from 115%, amend the provisions relating to payment of interest upon early conversion so as to ensure that payment of interest through the issuance of common shares is permitted and amend the definition of change-of-control provision to provide the company with greater flexibility to pursue or enter into a strategic transaction.

Mogo Finance is a Vancouver, B.C.-based financial technology company.

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