On May 24, 2024, the Government of Canada ordered the dissolution of Bluvec Technologies Inc. and Pegauni Technology Inc., following a national security review pursuant to the Investment Canada Act (the “ICA”).
The ICA regulates direct investment by non-Canadians who acquire control of an existing Canadian business, or, who wish to establish a new Canadian business. It is aimed to ensure significant investments into Canada by non-Canadians to benefit the local economy. In 2024, Bill C-34 amended the ICA to consider the rights and freedoms guaranteed by the Charter.
Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry, advised that foreign investments are subject to review for national security concerns. While foreign direct investment is welcomed, companies that threaten national security will cease all operations in Canada.
Corporate/commercial practitioners should consider this decision when advising foreign investor clients. To read Honourable Champagne’s complete statement, visit the government of Canada website here.
