A B.C. crowdfunding company that facilitates fractional investments as low as $1 per share in real estate developments has agreed to pay a $100,000 fine to the B.C. Securities Commission for unregistered trading.
Since July 2018, Addy Technology Corp. had not been registered in any capacity — including as a securities dealer — but commission investigators found it to be engaging in activities similar to a registrant, by soliciting investors through its online platform, email and social media.
Addy was also conducting what the commission described as "intermediating" trades and also receiving compensation in the form of fees.
Addy agreed to the fine in a March 17 settlement agreement after voluntarily providing information to investigators and admitting to the misconduct.
The platform matches small-scale investors to the likes of real estate investment trusts (REIT) and developers across Canada, known as issuers in legal terms.
For example, an issuing company in Victoria recently obtained financing for an 18-unit, purpose-built rental complex from 420 Canadians, according to addyinvest.ca.
Between July 9, 2018, and Feb. 14, 2025, Addy traded in approximately $26 million of securities of the issuers using the Addy platform. The average amount invested in the issuers was approximately $700 per investor, according to the settlement.
Addy charges investors $50 annual membership fees for early access to certain properties and additional features on Addy’s online platform.
Addy tried to use exemption rules but was not eligible.
For instance, some of the issuers Addy was promoting were owned by Addy principals, according to the agreement, and this negated Addy’s ability to utilize national crowdfunding rules that exempt those registration requirements, which otherwise provide a level of investor protection in the alternative lending space.
“By engaging in the above conduct, Addy engaged in the business of trading securities without being registered and without an exemption, contrary to the [B.C. Securities Act],” the agreement stated.
Addy has since made an application for registration as a dealer of securities, according to the commission.
