Canada to dissolve drone detection firm Bluvec over national security concerns

The Canadian government has ordered the dissolution of Canadian drone detection business, Bluvec Technologies Inc., following a national security review under the Investment Canada Act. A second company, Pegauni Technology Inc., listed as a wireless security product manufacturer, will also be dissolved. According to corporate registry records, both companies share the same CEO.

“In accordance with the Investment Canada Act, foreign investments are subject to review for national security concerns,” François-Philippe Champagne, Minister of Innovation, Science and Industry said. “As a result of the Government of Canada’s multi-step national security review process, which involves rigorous scrutiny by Canada’s national security and intelligence community, the Government of Canada, through the Governor-in-Council, has ordered the dissolution of the Canadian businesses carried on by Bluvec Technologies Inc. and Pegauni Technology Inc., and for those companies to cease all operations in Canada.”

The Minister added that the government’s decisions are based on facts and evidence and on the advice of Canada’s security and intelligence community and other government partners. “While Canada continues to welcome foreign direct investment, we will act decisively when investments threaten our national security,” he said.

The statement gave no further details of the security concerns.

Bluvec, founded in 2018, has specialised in counter-uncrewed aerial systems (C-UAS) technology to protect critical infrastructure such as airports as well as military facilities.

Following a civil suit last year, Bluvec CEO Junfeng Jia and another Bluvec employee were ordered to pay CAD800,000 to Vancouver-based SkyCope Technologies for the misuse of confidential information and selling a direction-finding code to Chinese C-UAS company Beijing Lizheng Technology.