Canada Orders Dissolution of Two Companies on National-Security Grounds

By Paul Vieira

OTTAWA--Canada on Friday ordered the dissolution of two companies on national-security grounds.

Canada's Industry Minister François-Philippe Champagne didn't disclose what type of threat the two firms posed. One of the companies, Bluvec Technologies, produces drone detectors, according to its web site. The other, Pegauni Technology, has a LinkedIn page describing itself as a wireless security firm.

Both companies benefited from foreign investors, according to Champagne. Based on evidence provided by security and intelligence partners, Champagne said he ordered that both companies, based in Vancouver, British Columbia, cease operations in Canada.

An employee at Bluvec said questions from the media had to be posed in an email. A representative for Bluvec didn't immediately respond. Attempts to reach Pegauni weren't successful.

"While Canada continues to welcome foreign direct investment, we will act decisively when investments threaten our national security," Champagne said.

Write to Paul Vieira at paul.vieira@wsj.com

(END) Dow Jones Newswires

May 24, 2024 17:57 ET (21:57 GMT)

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