The respondent sold across Canada options to purchase at a future time commodities which were traded on the London commodities market. The option premiums paid to the respondent went into its general account, and the respondent then purchased options on the London market through a broker in order to be able to meet its obligations to the purchasers, the profit to the respondent coming from the difference between the premiums and commissions paid to the broker, and the premiums charged to the customers. Grange J. affirmed the finding of the commission that these were "investment contracts" for purposes of the Securities Act (Ontario). He noted (p. 281) that the Howey test, as modified in Pacific Coast Coin Exchange, was as follows:
Does the scheme involve an investment of money in an enterprise in which the fortunes of the investor are interwoven with and dependent upon the efforts and success of those seeking the investment or of third parties, with profits to be derived in significant part from the efforts of those others?