While addy does not control how issuers communicate with investors, we require issuers to define their reporting commitments before an offering goes live clearly. These commitments are outlined in Section 3.1
What Reporting Rights Can Issuers Offer?
As part of the investment process, issuers are required to answer the following questions. Their responses will be included in Section 3.1 of the offering document, allowing investors to understand exactly what reporting they can expect.
Issuer Reporting Questionnaire:
Issuers will define their commitments by answering:
- Do you intend to offer any reporting rights to investors via addy?
- Will you be providing investors with your T2 General? (For corporations, the T2 General is the income tax return form submitted to the CRA.)
- Will you provide annual financial statements? (This could include an audited or unaudited financial report on the asset.)
- Will you provide interim financial statements? (Interim reports provide insight into financial performance between annual reports.)
- Do you get your asset(s) appraised regularly? (If so, will investors be informed of these appraisals?)
- Will you report material damages greater than $10K in cost to investors? (For example, major repairs due to natural disasters, fires, or structural damage.)
- Will you report to investors if there are further debt changes? (Such as additional debt being taken on or changes to existing debt terms.)
- Will you report to investors when the equity capital stack has changed? (For example, if there are new equity investors, a recapitalization, or a change in ownership structure.)
Examples of Reporting Frequency & Key Updates
Each issuer has the flexibility to set their own reporting schedule, but common examples include:
- Monthly Updates: A brief summary of progress, key developments, or operational updates.
- Quarterly Updates: A more detailed report covering financial performance, project progress, or changes to the investment.
- Annual Updates: A comprehensive overview of the investment's performance, key milestones achieved, and outlook for the upcoming year.
- Milestone-Based Updates: Informing investors when key events occur, such as:
- When financing is secured
- When construction begins (e.g., groundbreaking ceremony)
- When leasing or sales targets are met
- When an asset undergoes refinancing or major renovations
- When there are changes to timelines or project scope
By defining these reporting commitments upfront, issuers provide investors with a clear expectation of how and when they will receive updates.
How This Helps Investors
By requiring issuers to outline their reporting commitments in advance, addy helps investors:
✅ Understand the level of transparency an issuer is offering
✅ Make well-informed investment decisions
✅ Assess whether an issuer’s reporting frequency aligns with their expectations
Issuer Accountability
Once these commitments are documented in Section 3.1: Reporting Rights, they serve as a reference for investors. While addy cannot enforce compliance, issuers are expected to honor their commitments and maintain transparency with their investor base.