Vancouver-based Addy, a fractional real estate investment platform that once held over $1.3 billion in assets from more than 50,000 Canadian investors, announced this week it is restructuring its business operations.
Co-founders Stephen Jagger and Michael Stephenson informed users via email Wednesday that the company is "unable to continue operating in its current structure" and has engaged professional advisors Dentons and Crowe MacKay to manage the process.
The extent of the restructuring remains unclear, with the company not specifying whether formal insolvency proceedings, layoffs, or other measures are planned. Addy's automated support system now indicates response times may exceed seven business days.
Platform That Democratized Real Estate Investment
Founded in 2018, Addy revolutionized real estate investing by allowing retail investors to purchase fractional shares of properties for as little as one dollar. The crowdfunding approach aimed to break down traditional barriers that typically limit real estate investments to high-net-worth individuals and institutions.
The platform gained significant traction, with Vancouver Mayor Ken Sim publicly endorsing his investment in the company. However, Addy's website now primarily redirects users to its app dashboard, with many pages returning 404 errors.
Currently, only two properties from Atlas One Digital Securities remain listed on the platform, though attempts to interact with these listings generate error messages.
Regulatory Challenges and Licensing Issues
Addy's restructuring comes approximately one year after the company became an exempt market dealer (EMD), a regulatory status that permits trading of private securities. The company positioned this registration as a way to streamline transactions and expand offerings to include equity, debt, and real estate funds.
However, obtaining EMD status came at a significant cost. The British Columbia Securities Commission fined Addy $100,000 for trading approximately $26 million in securities without proper registration between 2018 and 2025.
Despite achieving EMD designation, the company appears to have made limited use of it. According to the email's fine print, Addy suspended its EMD operations across all Canadian jurisdictions as of December 31, 2025.
Warning Signs and User Concerns
In recent weeks, users on Addy's Discord server for real estate investors noted declining communication from the company, website outages, and that co-founder Stephenson's LinkedIn profile showed he left the company in December 2025.
"I think we all know that addy as we know it is done," one user commented on the server.
Alexander Morsink, co-founder and managing director of Equivesto, another EMD that previously worked with Addy, has been actively supporting investors on the platform. Morsink indicated that Addy never actually operated as an EMD after receiving its licence and renounced the licence in December.
What's Next for Investors
The company stated that Atlas One Digital Securities will continue licensing the Addy platform for its offerings, with user funds related to Atlas One's investments held in segregated trust accounts.
Updates regarding individual properties and special-purpose investment vehicles will continue through the platform, according to the Wednesday email to users.
This article is based on reporting by BetaKit. For the original story, visit BetaKit.
