Toronto-based Lendified Holdings Inc. has jumped into the exempt-market space through its subsidiary, Vault Circle Inc.
The financial technology (fintech) start-up announced on Wednesday that Vault Circle has received an exempt-market dealer (EMD) licence from the Ontario Securities Commission (OSC). Lendified, which specializes in small business loans, is hailing the announcement as new ground for the Canadian market.
“The OSC approval represents a historic leap forward for Canada’s fintech sector,” says Marcel Schroder, managing director and chief compliance officer with Vault Circle, in a statement. “Once launched, our platform will provide accredited investors with access to an exciting alternative investment option not available in Canada today.”
Specifically, accredited investors in Ontario will be able to co-invest in small business loans through Vault Circle.
Vault Circle’s approval as an EMD follows Lendified’s recent announcement that it has secured $24 million in funding. As well, Lendified has increased its lending capabilities to a maximum of $150,000 per loan from $35,000 per loan.
“As well as offering a new opportunity to investors, this approval strategically provides Lendified with another source of funding to meet the growing demand for online small business loans in Canada, and marks another chapter in our continued growth story,” says Troy Wright, Lendified’s founder and CEO, in a statement.
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