B.C. Electric Vehicle Charger Company Fined for Investor Misconduct

Vancouver – Hypercharge Networks Corp., a British Columbia-based company specialising in electric vehicle (EV) charging infrastructure, has been fined $35,000 by the BC Securities Commission (BCSC) for misconduct related to investor relations activities and violations of continuous disclosure regulations.

In 2023, the company engaged Gold Standard Media LLC and several associated firms, collectively known as the GSM group, to handle its investor relations. This included the distribution of 20 promotional email newsletters over a two-month timeframe. Although Hypercharge instructed the GSM Group to clearly indicate that these emails were sent on its behalf, the execution did not fully comply with securities law.

While 19 of these emails contained disclaimers informing recipients that they were from "paid advertisers" and that Hypercharge had compensated the GSM Group, these notices were often placed in long blocks of text at the end of the emails or were accessible only through hyperlinks. Such placements did not satisfy the legal requirement for clarity and prominence, which constitutes a breach of the Securities Act of British Columbia.

Following inquiries from BCSC staff, Hypercharge requested that the GSM Group remove any problematic promotional materials from circulation.

Additionally, in 2023, Hypercharge published an investor presentation on its website that projected a significant increase in its sales and revenue, forecasting a 200 per cent rise in charging ports sold and a 300 per cent increase in total revenue for the year. However, the presentation failed to disclose any underlying factors or assumptions that informed these projections. This omission is contrary to national standards for continuous disclosure by public companies, as it provided material forward-looking information without the necessary context. Subsequently, three months later, Hypercharge issued a press release retracting the previously stated growth figures.

Hypercharge, along with its Chief Executive Officer, Chief Financial Officer, and two independent board directors, fully cooperated with the BCSC during its investigation. Such cooperation is considered by the BCSC when negotiating settlements.

The BCSC expressed gratitude to the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) for its assistance with this case.

The BC Securities Commission operates as an independent provincial agency dedicated to ensuring that the investment market serves the public interest. The organisation sets regulations, monitors compliance within the industry, takes action against misconduct, and provides guidance to both investors and industry participants. As the overseers of British Columbia’s investment landscape, the BCSC aims to maintain a market that is transparent, fair, competitive, and dynamic, thereby fostering an environment where residents can prosper.

For public inquiries, individuals can contact the BCSC at 604-899-6854 or 1-800-373-6393 (toll-free) or via email at inquiries@bcsc.bc.ca. More information on investor protection can be found at www.investright.org.