11/06/2014 11:27 EST | Updated 01/06/2015 05:59 EST

El Mocambo to be bought by Michael Wekerle of Dragons' Den

Vince Talotta via Getty Images
TORONTO, ON - JUNE 2: Workers finish a $16,000 restoration-job on the legendary El Mocambo nightclub's sign at Spadina Ave. and College St. yesterday. The Elmo's sign, which went up in the '50s, has been broken for a decade. (Vince Talotta/Toronto Star via Getty Images)
The El Mocambo was slated to close its doors for good on Thursday night, until a new investor stepped forward to buy the legendary music venue.

Dragons' Den cast member Michael Wekerle put down a deposit to buy the Spadina Avenue music haunt, and El Mocambo has accepted it.

The purchase is set to close by middle of January 2015, according to Wekerle.

The El Mocambo was once a mainstay of bands visiting Toronto, with artists as varied as Blondie, U2, Fats Domino and the Rolling Stones taking the stage there over the years.

The venue will reportedly continue as a music venue in future.

The venue's multicoloured palm tree sign, which has stood tall over Spadina for decades, was put on the auction site eBay in October and was reportedly sold. But it has not been taken down as of yet. 

There is a benefit concert on Thursday, at which Wekerle will be handed the keys to the building on stage.

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