On Friday, the Canadian government ordered the dissolution of two technology firms, Bluvec Technologies Inc and Pegauni Technology Inc, citing significant national security risks. The decision, as announced by the Innovation Ministry, mandates these companies to halt all operations in Canada under the enhanced provisions of the Investment Canada Act, which regulates foreign investments.
Innovation Minister Francois-Philippe Champagne emphasized in the statement that while Canada remains open to foreign direct investment, the government will take stringent measures against investments that pose threats to national security. This decision follows an extensive review involving Canada’s national security and intelligence community.
Details about the specific investments, the nature of the security concerns, and comprehensive information about the companies were not disclosed. Bluvec Technologies is known for manufacturing drone detection devices, while Pegauni Technology, which had an inaccessible website at the time of the announcement, is noted in a LinkedIn profile as a producer of wireless security products.
This action aligns with recent amendments to the Investment Canada Act aimed at strengthening national security reviews concerning foreign investments, affecting both the acquisition of Canadian businesses by foreigners and the establishment of new foreign businesses within the country.