Canada’s federal government in Ottawa has ordered the dissolution of two privately held technology companies, citing national security concerns.
The companies, Bluvec Technologies and Pegauni Technology, were given the dissolution order and asked to cease operations in Canada under a federal law that governs foreign investments.
The decision was taken after a review that involved “rigorous scrutiny by Canada's national security and intelligence community,” said the federal government in a written statement.
The statement was short on details and did explain exactly what the government’s national security concerns are.
Bluvec Technologies makes drone detection technologies while Pegauni Technology makes wireless security products.
The Investment Canada Act that oversees foreign investments within the country was revised earlier this year to add tougher national security reviews of foreign entities.
Foreigners who acquire control of a Canadian business, or who wish to establish a new business in the country, are subject to the law and a government vetting process.
Neither Bluvec Technologies nor Pegauni Technology’s stocks trade on a public exchange.
Tech Insider
