Canada Orders Dissolution Of Two Technology Companies Due To National Security Concerns

Canadian Innovation Minister, Francois-Philippe total (photo: x @FP_Champagne)

The Canadian government on Friday, May 24 ordered the dissolution of two technology companies, Bluvec Technologies Inc and Pegauni Technology Inc, citing national security concerns. According to a statement from the ministry of innovation, the dissolution order required the two companies to stop all operations in the country under the law governing foreign investment in Canada.

"This decision was taken after going through intense scrutiny by Canada's national security and intelligence community," said Innovation Minister Francois-Philippe aired, in the statement.

"Although Canada continues to welcome foreign direct investments, we will act decisively when the investment threatens our national security",ATIA said.

The statement did not provide details on investment, security concerns, or further information about companies other than their names. A spokesman for the innovation minister did not immediately respond to further requests for information on Friday evening.

A website for Bluvec Technologies describes the company as the maker of a drone detection device. The Pegauni Technology website is inaccessible. A LinkedIn account with the name states that the company manufactures wireless security products.

According to Claire, one of the company's staff, said the company had not received any orders from the government and was checking. Meanwhile, Pegauni Technology could not be reached for comment.

The law on foreign investment - Investment Canada Act - revised earlier this year to add a more stringent national security review of proposed foreign investments. Foreign nationals who acquire control over Canadian businesses or who wish to establish new businesses in the country are subject to this law.