GOVERNMENT FUNDING & NEWS

Ottawa announces tax cut despite rapid increase in gross government debt

Finance Canada announced a tax cut for nearly 22 million Canadians, which the government said will save two-income families up to $840 a year in 2026.

Once legislated, the lowest marginal personal income tax rate will be reduced from 15 percent to 14 percent, effective July 1, 2025.

The government said this measure is expected to deliver over $27 billion in tax savings to Canadians over five years, starting in 2025-26.

The bulk of tax relief will go to those with incomes in the two lowest tax brackets (those with taxable income under $114,750 in 2025), including nearly half to those in the first bracket ($57,375 and below in 2025).

Finance Minister François-Philippe Champagne also said the government won’t table a federal budget when Parliament resumes on May 26 but instead issue an economic statement in the fall.

Champagne said the government will present its plan to tackle tariffs and other economic issues like affordability in the upcoming speech from the throne – which must be read as the first act of a new session of Parliament.

However, Prime Minister Mark Carney said on May 18 from Rome, where world leaders gathered to commemorate Pope Leo XIV’s inaugural mass, that his government will indeed table a budget this fall.

The Liberals had faced sharp criticism from their opponents since Champagne said the government wouldn’t table a budget this year.

Conservative Leader Pierre Poilievre said he was dismayed that the new Liberal government had decided to forgo a federal budget, saying Carney promised Canadians a plan during the election campaign and he should deliver one sooner rather than later.

A new study by the Fraser Institute found Canada’s gross government debt had risen to 110.8 percent of GDP in 2024, the 7^th highest out of 40 advanced countries.

The increase in Canada’s gross debt as a share of the economy was the third-largest increase of any advanced country and the highest in the G7. For comparison, 20 advanced countries have lowered their debt-to-GDP ratio since 2014.

“Simply put, over the past decade, the size of government in Canada and the overall government debt burden have grown faster than nearly every other advanced economy in the world,” the Fraser Institute said. Finance Canada, Fraser Institute, CBC

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Prime Minister Mark Carney established a 13-member “Build Canada” cabinet committee chaired by Minister of Energy and Natural Resources Tim Hodgson and vice-chair Minister of Internal Trade Chrystia Freeland. The cabinet committee includes new Industry Minister Mélanie Joly and new Minister of Artificial Intelligence and Digital Innovation Evan Solomon. The committee is to consider issues relating to building a strong economy that positions Canada to be competitive and productive – and that enables Canadians to succeed, according to the Prime Minister’s Office (PMO). This includes considering issues around housing, infrastructure investments, climate action, Indigenous economic prosperity and other measures to increase Canada’s economic resiliency. PMO

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Ontario government’s budget offers sizeable tariff relief but funding for postsecondary education is projected to fall

The Government of Ontario tabled a budget with a projected deficit of $14.6 billion in 2025-26 and a deficit of $7.8 billion in 2026-27.

The budget includes a $5-billion fund to provide immediate relief to support sectors of the economy facing U.S. tariff-related disruptions. The budget describes this fund as an "emergency backstop" that will provide immediate relief for Ontario businesses that have exhausted available funding.

The government also pledged to expand the Ontario Made Manufacturing Investment Tax Credit rate from 10 percent to 15 percent. It can be used for qualifying investments in buildings, machinery and equipment for use in manufacturing or processing.

The proposed changes would also expand eligibility for the non-refundable tax credit to non-Canadian-controlled private corporations and publicly traded corporations making eligible investments in Ontario.

The budget said these changes would help businesses lower their costs by providing an additional $1.3 billion in support over the next three years.

Other measures in the budget include:

• a $50-million investment over three years to focus on expanding interprovincial trade.
• $500 million to support critical mineral processing.
• a new program that would provide up to $40 million in grants for communities impacted by trade disruptions.
• an additional $1 billion over the next three years to train skilled workers.
• an additional $90 million in venture capital funding for provincial investment vehicle Venture Ontario. 
• an additional $73 million to the Ontario Vehicle Innovation Network.
• $15 million to renew the Life Sciences Innovation Fund.
• $207 million over three years for research at Ontario universities.
• close to $2 billion for the upcoming school year to repair and maintain schools. 
• $75 million over three years to create up to 2,600 new seats in construction-related post-secondary programs.
• $750 million over five years to fund up to 20,500 seats in science, technology, engineering and math programs at colleges and universities.
• up to $280 million over two years to support the expansion of integrated health service centres that will help more Ontarians access MRI and CT scans, among other services.
• $300 million investment to build 17 new and expanded community-based primary care teaching clinics. These clinics will be operated in partnership with McMaster University, NOSM University, Queens University, Toronto Metropolitan University, University of Ottawa, University of Toronto, and Western University. They will be used to train family doctors and other health care professionals while also providing patient care to Ontarians.

Skaidra Puodžiūnas, Ontario director of the Council of Canadian Innovators (CCI), said in a statement that CCI was “encouraged” by the budget’s Venture Ontario commitment, but “overall, the budget fell short of the transformational leadership this moment demands.”

Innovative, high-growth Ontario companies “are building high value-add products and services, creating high-paying jobs, new investments and generating long-term wealth owned and controlled here at home,” Puodžiūnas said. “But to unlock their full potential, we need more than reactionary measures.” 

Puodžiūnas said it was disappointing that the budget contained no updates on the Health Innovation Pathway procurement modernization program. The program is meant to reduce barriers across public sector procurement and simplify the way health care organizations can access new technologies.

Based on the government’s budget, funding for the post-secondary education sector for the next three years is projected to fall from last year’s $14.2 billion to about $13 billion this year and next year, to $12.8 billion in 2027.

The Ontario government’s budget neglects Ontario’s postsecondary education institutions by failing to provide critical investments needed amidst a demographic boom, domestic tuition freeze, reduced international student permits, all while facing economic challenges and turmoil, the Ontario Confederation of University Faculty Associations (OCUFA) said. 

“Ontario universities will continue to receive the least per-student funding in Canada, and for the foreseeable future,” said Nigmendra Narain, president of OCUFA, which represents over 18,000 faculty, academic librarians and academic staff.  

OCUFA said the announced $207 million for research over three years – or under $70 million per year – “masks a significant cut” compared to the $238 million provided in 2023-24. Government of Ontario, The Canadian Press

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The Government of Manitoba is providing $60 million in capital funding and a further $60 million in bridge financing to enable construction to start immediately on Winnipeg-based Assiniboine College’s new Prairie Innovation Centre for Sustainable Agriculture, which will expand workforce training opportunities and support the future of agriculture in Manitoba. With Manitoba’s agriculture industry expected to grow substantially, the Prairie Innovation Centre will add hundreds of additional training seats in the Westman region in southwest Manitoba to meet this demand. Assiniboine College has been working to establish the Prairie Innovation Centre as a state-of-the-art learning facility on its North Hill Campus in Brandon. The centre will foster collaboration with industry, promote cutting-edge research and expand agricultural training capacity to help meet local labour market needs. The Manitoba government is also advocating for federal support for the project. Govt. of Manitoba

The Government of Ontario and the Government of Manitoba signed a memorandum of understanding (MOU) to support the removal of barriers to trade between their two provinces. Through the MOU, Ontario and Manitoba agreed to boost the flow of goods, services, investment and workers, including through direct-to-consumer sales of alcohol and improved interprovincial labour mobility. In 2021, the value of total interprovincial trade between Ontario and Manitoba stood at $19.5 billion. This latest MOU follows the Ontario government’s recent signings of MOUs in support of free trade with Nova Scotia and New Brunswick, as well as the recent introduction of the Protect Ontario Through Free Trade Within Canada Act. The Ontario government said this is a nation-leading piece of legislation designed to break down barriers to the free trade of goods and services and the movement of qualified, in-demand workers throughout Canada, to help Ontario and Canada withstand the impact of U.S. tariffs and other challenges that may arise. Govt. of Ontario

The Government of Alberta is investing $6.5 million over three years in the New North America Initiative, led by the University of Calgary’s School of Public Policy. The aim is to help Alberta navigate the recent shift in the historically strong and cooperative relationship between Alberta and Canada and the United States. North America faces a significant gap in dedicated research activity specific to the study of Canada-U.S. relations and policy – and there is a particular shortage of this research from a western Canadian perspective, the Alberta government said. The New North America Initiative will connect thought leaders, government officials, universities in Alberta and the U.S., the private sector and think tanks in Alberta and across the continent to increase understanding and share new ideas on relations with the U.S. In addition to coursework and hands-on involvement in research, the initiative will help train students in specific skills and knowledge to work for government, private sector and civil society in a new era of relations with the U.S. Govt. of Alberta

Alberta Premier Danielle Smith said the federal government needs to support a major West Coast pipeline like the previously proposed Northern Gateway project to show Ottawa is fully behind the province’s natural resource sector. Speaking to reporters, Smith said that particular route gives Alberta access to all the Asian markets and “a preference of being able to get our product there over any country in the world.” The pipeline should be fast-tracked and de-risked and the current federal ban on oil tanker traffic off B.C.’s northern coast lifted, she said. Smith’s comments come as China emerged – ahead of the U.S. – as the main buyer of oil shipped via the Trans Mountain pipeline to Prince Rupert, which remains the only major oil project directly linking Alberta with the West Coast and Asian markets. Calgary Herald

The Government of Alberta is investing $15 million over three years in the Mitacs Internship Program to help provide hands-on learning experiences for post-secondary students and recent graduates in the province’s priority growth areas such as research and development, innovation and science. The non-profit Mitacs’ Internship Program helps drive research commercialization in Alberta and complements other government-funded work-integrated learning programs. Internships also help industry partners achieve their innovation potential, respond to current business challenges and grow their competitive advantage. This $15-million in provincial funding, combined with federal and industry funding, will allow the Mitacs Internship Program to offer more than 3,000 Albertan student internships. Twenty-three Alberta postsecondary institutions currently have Mitacs funding arrangements. Govt. of Alberta

British Columbia Premier David Eby said the government will fast-track major projects only if they have Indigenous equity stakes and First Nations’ consent and financial benefits. The only way forward with major projects in the province is through Indigenous partnership, he told The Globe and Mail. Federally designated projects that would cross into B.C. should expect to meet the same standard, he said. “For us, it’s about actual ownership by the Nation whose territory the projects are going on.” Eby’s New Democratic Party government wants to pass Bill 15, the Infrastructure Projects Act, by the end of May. The proposed legislation would grant sweeping powers to cabinet to designate priority projects that would jump the queue for regulatory review for approvals. The Eby government has identified clean energy and critical mineral mines as top priorities but has offered little encouragement to Alberta for new fossil fuel projects. B.C. government data show there are currently 43 major energy and mining projects under review across the province. The First Nations Leadership Council is calling on Eby to immediately withdraw Bill 15 as well as Bill 14 aimed at streamlining permitting for renewable energy projects, because the government failed to adequately consult First Nations on the two bills. The Globe and Mail, First Nations Leadership Council

The Canada West Foundation (CWF) is urging the federal government to remove the remaining federal exemptions under the Canada Free Trade Agreement and lead regulatory harmonization efforts with the provinces. In a letter to Jeannine Ritchot, assistant deputy minister, multilateral relations and internal trade, Intergovernmental Affairs in the Privy Council Office, the CWF makes several other recommendations to reduce barriers to internal trade and mobility in Canada:

• Reaffirm constitutional commitments: Champion a modern interpretation of Section 121 to support economic unity. A broader interpretation aligned with the original spirit of Confederation could serve as a legal and symbolic foundation for advancing internal economic integration.
• Improve labour mobility and economic integration for newcomers. Federal leadership should establish joint credential assessment bodies – especially for immigration pre-arrival – which would address systemic inefficiencies and improve outcomes for both newcomers and employers.
• Address infrastructure bottlenecks and approval delays. Clarifying federal processes and timelines for project approvals and investing in a national trade corridors strategy will better support east-west supply chains and internal competitiveness.
• Review legislation with unintended regional consequences. CWF said it encourages constructive dialogue on the effects of legislation such as Bills C-69 (the Impact Assessment Act) and C-48 (An Act to amend the Criminal Code) with an openness to amendments that better reflect regional realities without compromising national objectives.
• Modernize Canada’s approach to supply management A well-structured transition plan would support affordability, enhance international trade readiness, and improve access for Canadian consumers. Canada West Foundation

The Canada Border Service Agency’s (CBSA) new digital program that allows the goods of Canadian importers and trade chain partners to be cleared at customs without paying duties and taxes on arrival is causing disruptions to supply chains and cross-border trade, says the Canadian Federation of Independent Business (CFIB). New data by the CFIB shows that nearly half (45 percent) of importers are not registered with the program and another 18 percent are unsure if they need to be. All Canadian importers must be fully registered with CBSA’s new Assessment and Revenue Management System and post financial security, with cash or bond, before May 20 if they wish to participate in the Release Prior to Payment program. If importers aren’t registered with the new system, they’ll have to physically show up at the border and pay duties and taxes to have their goods released, the CFIB said. Until this change, importers mostly relied on their customs brokers to manage this process for them as part of the service they provided. “We’re already seeing disruptions to supply chains and cross-border trade. Now is not the time to push for these changes,” Corinne Pohlmann, executive vice-president of advocacy at CFIB, said in a statement. Currently, there are only two options to meet the RPP requirements, and neither of them is appealing for a small business operating on a tight budget, she said. Smaller importers, especially those importing only once or twice a year, would rather have the option of paying with a credit card on file than provide a cash deposit or buy a yearly security bond, Pohlmann said. CFIB sent a letter to the federal government urging it to make an exemption for smaller importers from the current financial security requirements under the RPP program or allow them to use a credit card instead. CFIB is also asking government and border agencies to be lenient with importers during the first few years of the new system’s implementation and prioritize education over penalties. CFIB

The Confédération des syndicats nationaux (CSN) and the Fédération québécoise des professeures et professeurs d’université (FQPPU) called for the resignation of Government of Québec Higher Education Minister Pascale Déry. The CSN has raised concerns about alleged political interference in curriculum decisions and recent budget reductions. The FQPPU has criticized the minister’s approach to academic freedom, higher education funding and policy direction. “Pascale Déry has weakened the policy tools of higher education, hollowed out her ministry's mission, and ignored major crises – from funding to artificial intelligence – by downplaying the issues and evading responsibility,” the FQPPU said in a statement. "Her obstinate refusal to acknowledge the scale of the crisis only deepens her growing isolation within higher education, a sector where she should be the primary ally. She no longer has our trust moving forward." The Montréal Gazette reported that an open letter signed by over 750 cégep and university faculty members, which expressed opposition to a ministerial investigation into campus climates at several anglophone colleges and demanded that Déry resign. FQPPU

RESEARCH, INNOVATION & COLLABORATION

Canada Foundation for Innovation-funded facilities and equipment help drive recruitment of researchers, CFI reports

Researchers hired over the last year to lead projects at higher education institutions with labs, tools and equipment funded by the Canada Foundation for Innovation (CFI) overwhelmingly said that research infrastructure was a key factor in their decision to accept the new role, according to a report by the CFI.

Of the 269 newly recruited researchers, 98 percent said CFI-funded tools and facilities helped persuade them to accept the position.

Established researchers echoed this sentiment, with 94 percent saying CFI-funded research infrastructure influenced their decision to remain at their current institution. 

This year’s report is based on performance data for the 2023-24 fiscal year from 1,741 infrastructure projects at 85 institutions.

Just over half of the new recruits – of Canadian or non-Canadian citizenship – came from outside the country, which demonstrates that access to high-quality research infrastructure is not only retaining domestic expertise, but also attracting international talent and bringing home Canadian researchers trained abroad., the CFI said.

Despite this, 30 percent of respondents’ projects still faced challenges in recruiting and retaining trainees or personnel – the most common problem reported across all projects.

This was followed by problems in funding support for direct costs of research, acquiring equipment and becoming operational, and updating and upgrading equipment/space issues.

Eighty-seven percent of researchers leading CFI-funded projects reported that they had both adequate financial and human resources for the operation and maintenance of their CFI-funded research infrastructure.

Trainees also benefited from access to facilities and equipment that received CFI funding. More than half of the nearly 25,000 postdoctoral fellows and higher education students who used this research infrastructure did so for the first time in 2024, gaining new skills along the way.   

This year 1,734 postdoctoral fellows and graduate students completed their training and moved into the workforce. Nearly all – 84 percent – secured jobs in Canada, with more than half securing jobs in the private sector.  

The Canadian economy benefited from the creation of more than 1,200 jobs as a result of CFI-funded infrastructure. Most of those jobs were created within the research facility, but more than 250 are in the private sector.

Additionally, 30 spinoff companies were launched and researchers obtained 214 patents and provisional patents. CFI

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Honda announced it will strategically rearrange production of some Ontario-built CR-V compact SUVs to Ohio and Indiana to reduce the impact of U.S. tariffs. However, about the same number of vehicles are currently made in Ohio for non-U.S. markets. Those will now be made in Canada. Honda said its Ontario production plant will not see a decrease in production or workforce. Honda also confirmed that it plans to stop building the five-door Civic at its factory in Yorii, Japan and shift production to Indiana sometime this summer. Car and Driver

Genome Canada released its strategic directions for 2025 to 2030, which the organization says are  driven by key imperatives, including:

• Strengthening national sovereignty by building critical domestic capabilities to protect against pandemics, secure essential supply chains and respond to environmental risks.
• Enhancing economic security by commercializing and implementing cutting-edge genomics technologies that increase productivity and create high-value Canadian jobs.
• Safeguarding environmental sustainability by addressing climate change while ethically deriving value from Canada’s natural resources.
• Ensuring inclusivity in genomics, so all Canadians are represented in the country’s health data and benefit from economic and social gains – from coast to coast to coast.

In terms of activities, Genome Canada says it aims to:

• Drive the sequencing of 100 genomes by partnering with AI companies and institutions to develop AI tools to understand the data.
• Build more resilient agriculture and food systems.
• Revolutionize Canada’s resource sectors by enhancing productivity while reducing environmental impacts.
• Develop sustainable bio-based alternatives that transform traditional industries and create new value chains.
• Accelerate translation of genomics into market-ready commercial products across the Canadian economy. Genome Canada

The BC Centre for Innovation and Clean Energy (CICE) rebranded as NorthX Climate Tech, expanding its mandate and introducing new investment tools to support the growth of Canada’s climate technology sector. Originally launched in 2021 with support from the Government of British Columbia, the Government of Canada, and Shell Canada, the centre focused on accelerating innovation in four key areas: energy storage, low-carbon hydrogen, low-carbon fuels, and carbon management. Since then, it has supported 65 projects and contributed to the creation of more than 800 jobs, according to the organization. Under the new NorthX name, the organization said it will take a broader approach – supporting a wider range of “climate hard tech” solutions, including infrastructure, industrial systems and materials-based innovations. In addition to its name change, NorthX is introducing new forms of financial support. The organization will now offer repayable, non-dilutive investments alongside its existing grant-based funding. NorthX also plans to increase follow-on investments in companies that are scaling up. The goal, according to NorthX, is to fill critical capital gaps and help more Canadian companies bring climate technologies to market. Vancouver Tech Journal

The Council of Canadian Innovators (CCI) launched Cannector, a new executive and board search service designed to connect Canada’s fastest-growing firms with experienced leaders who understand the challenges and opportunities of scaling in a global market. Cannector offers a tailored, high-touch approach to identifying board members, executive leaders, fractional talent and advisors. Unlike traditional search firms, Cannector draws from CCI’s trusted network of operators – vetted, trained, and battle-tested through real experience building Canadian companies. Cannector’s curated roster includes:

• Former and current C-suite executives.
• Founders-turned-advisors.
• Board directors and committee chairs.
• Experts in AI, cybersecurity, IP and commercialization.
• Alumni of CCI’s Innovation Governance Program, Chief of Staff Accelerator, and AI G.U.I.D.E. Program

Cannector offers a range of engagement models:

• Targeted Campaigns – Promote your role directly to CCI’s network of over 1,500 vetted innovators.
• Shortlist Searches – Receive a custom shortlist of 10–15 qualified leaders matched to your growth goals.
• Brokered Introductions – Get high-touch support to meet, evaluate, and engage potential candidates with speed and discretion.

“With Cannector, we’re offering a solution to one of the most persistent barriers to growth – it strategic leadership,” said Benjamin Bergen, president of CCI “This isn’t just a matchmaking tool – it’s an extension of our mission to strengthen Canada’s innovation economy.” CCI

Rio Tinto Group plans to spend as much as US$1.2 billion by 2032 to modernize its 99-year-old power plant in Quebec, despite tariffs implemented by the Trump administration on Canadian imports of aluminum. The Isle-Maligne hydropower generation station located in Alma, about 480 kilometres north of Montreal, provides electricity to Rio Tinto’s aluminum smelters in the region. The company said in a statement that it is the “largest single investment in its hydroelectric assets since the 1950s.” “This major investment to modernize our facilities will ensure the long-term future and competitivity of our low-carbon aluminum production in Quebec for decades to come for our Canadian and American customers,” Sebastien Ross, Rio Tinto’s managing director for Atlantic operations, said in a statement. The company employs about 4,000 people in Quebec. Rio Tinto also began expanding its aluminum smelter in Saguenay, Que., in 2023 with the installation of 96 new pots using AP60 low-carbon smelting technology at a cost of $1.1 billion. Rio Tinto

Halifax-based Ucore, a rare earth metals company, will receive US$18.4 million from the U.S. Department of Defense (DoD) to build a refinery in Alexandria, Louisiana, that will use its RapidSX rare earth element separation technology. UCore’s technology replaces the need for an electric-powered mixing tank to extract light and heavy rare earth elements, which the company promotes as a cost-friendly alternative. The money from DoD will allow for the installation of a RapidSX machine capable of commercial-scale production. This latest funding follows a US$4-million deal with the DoD to develop the prototype. Construction of the Louisiana refinery is expected to be finished in 2026, when the facility will begin early production. Ucore

Stonlasec8 Indigenous Alliance Partnership, representing 36 First Nations, announced an agreement to invest $715 million for a 12.5-percent interest in Enbridge Inc.’s Westcoast natural gas pipeline system. The pipeline system has operated on the traditional Indigenous territories for decades. Stonlasec8 also reached an agreement with Canada Indigenous Loan Guarantee Corporation, a subsidiary of Canada Development Investment Corporation, on a $400-million loan guarantee to support the transaction. On closing, this equity investment will be the first major investment to receive a loan guarantee under the Canadian Indigenous Loan Guarantee Program, announced by the Government of Canada last spring. Tim Hodgson, the new federal minister of Natural Resources, praised the deal, calling it “a blueprint for reconciliation and prosperity that we intend to replicate across Canada.” Globe Newswire

The Nuclear Waste Management Organization (NWMO) announced it has selected five companies to work with to design and plan Canada’s deep geological repository for used nuclear fuel in northwestern Ontario. The NWMO, as the owner of the project, will be working with WSP Canada Inc., Peter Kiewit Sons ULC (Kiewit), Hatch Ltd., Thyssen Mining Construction of Canada Ltd. and Kinectrics Inc. The chosen companies will work on facility infrastructure design and engineering, construction planning, mine design, mine construction, nuclear management advising and nuclear systems and facilities design. The companies and the NWMO will work as one team, co-located to move the project forward. Construction will only begin once the deep geological repository has successfully completed the federal government’s multi-year regulatory process and the Indigenous-led Regulatory Assessment and Approval Process, a sovereign regulatory process that will be developed and implemented by  the Wabigoon Lake Ojibway Nation. ReNew Canada

The Alberta Energy Regulator (AER) approved with conditions Australia-based Northback Holdings Corporation’s coal exploration project in the eastern slope of the Rocky Mountains. The approval of three applications from Northback will allow exploratory drilling at Grassy Mountain in the Crowsnest Pass. The proposed project has been met with protest from residents in the area, with many raising concerns about its potential effects on the environment. The project’s approval is contingent upon Northback meeting several conditions, including:

• Managing drilling waste, including drill fluids and cuttings, and their subsequent disposal to the satisfaction of the AER.
• Sharing a project-specific erosion and sediment control plan with the AER before exploration operations begin.
• Making the program consistent with Northback’s integrated weed-management plan.
• Environmental mitigation measures being consistent with the recommendations in the company’s pre-disturbance site assessment.
• Meeting the conditions required by Alberta Forestry and Parks for Crown land reservations in the area.

Northback also made several commitments to the Piikani Nation, including:

• Making data collected by Northback as part of the exploration program available to the Piikani Nation for their review and analysis.
• Retaining Piikani members as “cultural and environmental monitors” for the duration of the program.
• Providing to the Piikani Nation upon their request, the information obtained from Northback’s trail cameras located in the area near the project sites.

About 150 protesters took to the steps of the AER’s Calgary office on the final day of the hearing, voicing concerns around the three proposals. AER, CTV News

Calgary-based Beacon AI Centers plans to build an initial 4.5-gigawatt (GW), high-capacity data centre development in Alberta, targeting six sites around Calgary and Edmonton. The company announced the appointment of Josh Schertzer as CEO to lead the effort. He is the former chief technology officer of enterprise technology at Blackstone. Beacon’s portfolio includes high-capacity data centres in Alberta near Chestermere, High River, Acheson, Sturgeon County, Langdon, and Beaumont, with expansion to other jurisdictions planned in 2026 and a total development pipeline of 4.9 GW across North America. Beacon’s investment is forecast to be up to $10 billion. Each data centre will incorporate advanced cooling systems, energy-efficient design and robust connectivity to serve both public and private sector partners. Business Wire

Toronto-based battery resource recovery company Li-Cycle Holdings announced it is under bankruptcy protection in Canada and has filed for Chapter 15 of the U.S. Bankruptcy Code. Court documents filed in Ontario Superior Court cite a string of events that led to Li-Cycle’s insolvency. These include major construction cost overruns, two proposed class-action lawsuits, legal claims on its property, and difficulty raising the money needed to secure a loan from the U.S. government that would let it reboot stalled operations. As part of the Canadian bankruptcy proceedings, the Li-Cycle Group expects to conduct a court-supervised sale and investment solicitation process, which will be a continuation of its previously disclosed efforts to seek buyers for its business or its assets. Li-Cycle also has secured a credit facility of up to $10.5 million from an affiliate of Glenore Canada Corporation, Li-Cycle’s largest secured creditor, to finance Li-Cycle’s working capital requirements, including the continued operation of the company’s Germany Spoke recycling facility. Swiss-based mining giant Glencore also is making a “stalking horse” bid for at least $40 million of Li-Cycle’s assets. If courts approve the offer, it could entitle Glencore to most of Li-Cycle’s U.S. and German operations and its intellectual property. Li-Cycle Holdings

St-Jérôme, Que.-based electric bus and truck manufacturer Lion Electric Company announced that a consortium, led by entrepreneur and Lion Electric board member Pierre Wilkie and Vincent Chiara, president of Montreal real estate developer Groupe MACH, agreed to buy the company out of insolvency. Court filings didn’t reveal the price of the winning bid for the company, which struggled to cope with a slowdown in the EV industry. The deal, which still needs approval in Quebec court, would retain a portion of employees and keep Lion Electric in the hands of local businesspeople. Lion Electric, The Canadian Press

Quebec City-based LeddarTech Holdings Inc., which makes AI software for autonomous vehicles, warned its investors could lose “all or a substantial part” of their investments if the company is not able to reach a deal with lenders or raise additional financing within days. The company has hired a financial advisor to do a comprehensive review of the options available. The company’s financing deal with Desjardins requires LeddarTech to raise at least US$9.7 million in equity investments prior to May 23, 2024 or it will be in default on its credit facility. “At this time, we are not expecting to be able to complete the equity financing or produce a plan that would be acceptable to all our lenders,” LeddarTech said. LeddarTech Holdings

Calgary-based Exro Technologies Inc., a cleantech company focused on power controls for electric vehicles and energy storage applications, announced a deal with an undisclosed “long-term institutional shareholder” to get up to US$30 million through a loan facility. This will help Exro “maintain operations” while giving an independent advisor more time to conduct a “strategic review process” of the company’s business, according to a statement. The review could lead to capital restructuring, corporate mergers or partnerships. Exro has to provide an operating plan to the lender by May 20, 2025. Exro also said it has initiated an “orderly wind-down” of its Australia-based subsidiary. Exro Technologies

London, Ont.-based Aspire Food Group, an insect agriculture firm specializing in farming crickets for use as protein, was ordered into receivership by an Ontario court. A Superior Court of Ontario justice ordered that FTI Consulting be appointed receiver of Aspire and its related entities and all "assets, undertakings, and properties" acquired or used by the firm at its Innovation Drive facility, along with its proceeds. The order followed an application filed by Farm Credit Canada (FCC) in February to appoint FTI Consulting as receiver and manager, saying Aspire owed FCXC nearly $41.5 million under an amended credit agreement reached the previous year. Since opening its plant in London in 2022, Aspire has been unsuccessful in replicating a proprietary cricket growth and harvesting methodology developed at an R&D facility in Austin, Texas, and has failed to commercialize and scale its operation, FCC’s application said. Aspire’s goal was to produce up to 13 million kilograms of crickets annually for use as an alternative consumable protein source. A vast majority of the plant's production was for the pet food industry. The 14,000-square-metre plant was opened with the help of roughly $35 million in federal funding through Sustainable Development Technology Canada, Agriculture and Agri-Food Canada, and the federally funded NGen global innovation cluster. CBC News

California-based Rubicon Carbon, a carbon credit management firm, announced an agreement with Microsoft to purchase 18 million tonnes of high-quality carbon removal credits – one of the largest single-buyer commitments of its kind in the world. Each carbon removal transaction under this deal will be structured as 15-year to 20-year offtakes, supporting a pipeline of individual afforestation, reforestation and revegetation (ARR) projects worldwide. Rubicon Carbon will source, assess, and conduct advanced due diligence on the ARR projects, prioritizing those with strong potential for scale but limited access to capital. Microsoft and other AI developers are seeking carbon credits to offset emissions from their high-powered data centres. Business Wire

The United Arab Emirates (UAE) in partnership with U.S. technology leaders plans to build a new five-gigawatt UAE-US AI Campus in Abu Dhabi, the largest AI infrastructure project outside the U.S. The 26-square-kilometre facility, with 5 gigawatts of capacity for AI data centres, is to be built by a consortium led by Emirati artificial intelligence firm G42 as a Middle East springboard for American companies to offer computing services to customers in the area. The facility will leverage nuclear, solar and natural gas power to minimize carbon emissions. The U.S. Commerce Department said nearly half the world’s population is within 3,200 kilometres of the site and would benefit from shorter data-transmission times for AI services. UAE

Groups of AI large language models playing simple interactive games can spontaneously develop “social norms,” such as adopting their own rules for how language is used, according to a study published in Science Advances. Social conventions such as greeting a person by shaking their hand or bowing represent the “basic building blocks of any coordinated society,” said study co-author Andrea Baronchelli at St. George’s University of London, who studies how people behave in groups. Baronchelli wanted to see what happens when large language models (LLMs) interact in groups. In the first of two experiments, his team used Claude, an LLM created by Anthropic, to play a naming game similar to one used in studies of group dynamics in people. The game involves randomly pairing up members of a group and asking them to name an object, with a financial incentive if someone provides the same name as their partner and a punishment if they don’t. After repeating this over several rounds and continuing to randomize partners, group members start to give the same name for the object. This naming convergence represents the creation of a social norm. The team then set up 24 copies of Claude and then randomly paired two copies together, instructing each member of the pair to select a letter from a pool of 10 options. The models were rewarded if they chose the same letter as their partner and penalized if they didn’t. After several rounds of the game, with new partners each time, pairs began selecting the same letter. This behaviour was observed when the game was repeated with a group of 200 copies of Claude and a pool of up to 26 letters. Similar results also occurred when the experiments were repeated on three versions of Llama, an LLM created by Meta. The research suggests that when these LLM  agents communicate in groups, they do not just follow scripts or repeat patterns, but they self-organize, reaching consensus on linguistic norms much like human communities. NeuroscienceNews.com

VC, PRIVATE INVESTMENT & ACQUISITIONS

Montreal-based Novisto raised US$27 million in an all-equity Series C funding round led by Inovia Capital, with participation from all previous investors including White Star Capital, SCOR Ventures, and Sagard. Novisto’s platform enables companies to efficiently and securely collect, manage, approve, disclose and defend their sustainability data, all in one place. The company plans to use the funding to scale across Europe and expand its environmental, social and governance (ESG) platform. Novisto has joined global technology company SLB’s Digital Platform Partner Program, giving a network of customers access to its platform and supporting their broader ESG reporting needs beyond the greenhouse gas solutions it already offers. Finextra

Velocity Fund II (VFII), an early-stage venture capital fund spun out of the University of Waterloo’s Velocity incubator, raised US$10 million. VFII’s investors are a group of limited partners that includes Graphite Ventures, the University of Waterloo, the AngelList Systematic Fund of Funds, and undisclosed high-net-worth individuals, many of whom are UWaterloo alumni. Managed independently by general partners Akash Vaswani and Ross Robinson, the fund is focused on investing in founders at the earliest stages across software, deep tech and health tech sectors. UWaterloo was the first post-secondary institution in Canada to invest from its endowment into an independent venture capital fund. The fund’s close ties with Waterloo founders have  seen companies like Ground News and Scribenote benefit   from its investments. VFII has already made investments in five new companies including Voltra Energy and Handshake, two high-profile Velocity-based startups which have already yielded commercial success. UWaterloo

Edmonton-based food service tech startup Scription Maintenance raised US$7.85 million in a seed funding round led by IA Capital with further participation by Markd. Scription said its Scription360 outcome-based service program for the food service industry eliminates financial risk for restaurant equipment operators while aligning the incentives of equipment service companies to financially benefit from equipment uptime, rather than equipment breakdowns. Scription offers monthly fixed-price coverage for equipment assets. PR Newswire

Toronto-based biotech company Intrepid Labs emerged from stealth operating mode and raised US$7 million in a seed funding round led by Avant Bio. Intrepid said it is transforming drug design and therapeutic development with its Valiant™ platform – a modular, AI-driven robotic lab that rapidly explores the full formulation design space. Starting with an active pharmaceutical ingredient and a target product profile, Valiant selects, prepares and analyzes formulations through semi- and fully autonomous workflows, refining multiple parameters in parallel with expert oversight. What once took months can now be achieved in days, the company said. Intrepid’s founding team includes University of Toronto academics and staff: professors Christine Allen, a pharma researcher, and Alán Aspuru-Guzik, along with scientists Pauric Bannigan and Riley Hickman. The Avant Bio partner on the venture investment, Sebastien Latapie, is a McGill University grad. The financing will be used to expand Intrepid’s team, accelerate the development of its proprietary delivery technologies, and scale commercial operations. BusinessWire

Vancouver-based Veritree Technologies, which offers a platform to verify nature restoration, raised US$6.5 million in a Series A funding round led by Pender Ventures, with participation from Garage Capital, Northside Ventures, and Diagram Ventures. Veritree also announced a milestone of 100 million trees pledged across its global projects. The company said it will use the capital to accelerate the rollout of its AI monitoring and analysis features, test and deploy the platform across new ecosystems in South America and Asia, accelerate its current go-to-market success, and build additional integrations to enhance auditing, strengthen monitoring and improve platform accessibility. Veritree

Vancouver-based Verdi raised US$4.7 million in a funding round led by SVG Ventures, with participation from NEC X, Ponderosa Ventures, Elemental Impact, GenomeBC, One Small Planet, Waterpoint Lane, Dangerous Ventures, VentureUs, Echo River Capital, Cyan Ventures, Jetstream, and Baker Hall Capital. Verdi powers and retrofits existing automated irrigation infrastructure with smart devices capable of remote leak detection and low-level irrigation control, to help farmers reduce costs and save water. Verdi said the funding will be used to scale rapidly. PR Newswire

Toronto-based Una Software raised an additional US$4.4 million in an all equity seed funding round led by Staircase Ventures, with participation from New York City-based Emerald Development Managers. Founded in 2024 by former leaders of Vena Solutions, Una Software specializes in financial planning and analysis, targeting enterprise teams with a platform that facilitates collaboration across departments for tracking, forecasting and reporting financials. The company is integrating AI-powered features such as a conversational co-pilot, predictive forecasting and an enhanced action tracker into its platform. Una said the new money will go toward working capital for the company’s product development and go-to-market. Startup Ecosystem Canada

Waterloo, Ont.- and San Francisco-based EV startup Voltra emerged from stealth operating mode and raised US$1.8 million in a pre-seed funding round led by Contrary, with Hanover Capital and the University of Waterloo’s Velocity Fund participating. The funding will help Voltra launch its first product, a software development kit called Charge, a unified platform for connecting EV chargers to the grid. Voltra plans to expand its technology to energy storage, industrial controls and the wider electrical distribution system. PR Newswire

Katherine Homuth, the founder and former CEO of Montreal-based SRTX, is launching a new venture just as the high-tech textile startup she once led closes on key financing and elects her replacement. In a Substack post, Homuth said she is launching a new venture, Oomira, to build companies a “queryable” archive of every decision they’ve ever made. Homuth’s announcement comes as SRTX appointed chief financial officer Timothy Leyne as interim CEO and closed more than half of a much-needed US$40-million fundraising deal set to close in July. In late March, Homuth announced she was stepping down as CEO of the textile startup, which manufactures Sheertex rip-resistant tights. Her departure came as part of the fundraising round. SRTX temporarily laid off roughly 40 percent of its staff in February amid the U.S. tariff threat. BetaKit

Toronto-based digital asset products company WonderFi agreed to be acquired by U.S. trading platform Robinhood Markets. Nasdaq-listed Robinhood will buy all issued and outstanding common shares of WonderFi for $0.36 per share in cash. This represents a total equity value of approximately $250 million on a fully diluted, in-the-money basis. As part of the deal, WonderFi’s leadership and entire 115-person team will join Robinhood Crypto’s Canadian workforce. Robinhood, which established a Canadian headquarters in Toronto in 2024 as an infrastructure engineering hub, now employs 140 people in Canada. WonderFi is expected to delist from the TSX upon closing of the deal. WonderFi

Canadian companies closed fewer venture capital deals in the first three months of 2025 than any quarter since the start of 2020 amid global trade uncertainty, according to a report by the Canadian Venture Capital & Private Equity Association (CVCA). Investors allocated $1.26 billion across 116 deals in the first quarter. That’s roughly the same amount of capital as the first quarter of both 2024 and 2023. But this year, that money was spread over far fewer deals, especially early-stage ones. The persistent slowdown in pre-seed and seed-stage investments is now at levels not seen since 2020, CVCA chief executive Kim Furlong wrote in the report.  “A weakening at the foundation threatens the innovation economy we’ve worked hard to build.” Meanwhile, exits for both venture capital and private equity-backed firms declined, with no initial public offerings and fewer mergers and acquisitions. “It’s clear we need a more deliberate industrial strategy, one that aligns our public ambitions with private sector capabilities,” Furlong wrote. Ontario, Quebec and Alberta accounted for 90 percent of all dollars invested and 76 percent of all deals closed in the first quarter of 2025, with more than $1.1 billion deployed across 88 deals. Alberta ranked second for average deal size. Q1 2025 marked the highest level of first-quarter investment activity on record in the ICT sector, with $807 million invested across 58 deals According to PitchBook, U.S. investors participated in 80 percent of Canadian venture capital investments in the first quarter of 2025, amounting to 86 deals worth US$800 million. American backers led at least 24 of those transactions, representing about half of all deal value. . CVCA

REPORTS & POLICIES

 Environmental law group and First Nations oppose Ontario’s Bill 5 aimed at unlocking the province’s economic potential

The Government of Ontario’s Bill 5 would harm environmental safeguards, create “law-free” zones and should be withdrawn, says the Canadian Environmental Law Association (CELA).

CELA said that Bill 5, the Protect Ontario by Unleashing Our Economy Act, is omnibus legislation that would:

• Suspend environmental laws in new “Special Economic Zones” that the government is empowered to create and where any provincial laws and municipal bylaws can be suspended. This would avoid public accountability by seeking to shield government decisions from civil liability.
• Weaken the Mining Act by modifying the purposes of the act to emphasize “protection of Ontario’s economy” and curtail public consultation.
• Amend and replace the Endangered Species Act with a narrower Species Conservation Act that focuses on economic development, undermines habitat definitions, removes automatic listing of species at risk, and weakens governmental powers to protect species.
• Exempt major projects from environmental reviews, in particular environmental assessments of the Dresen landfill and Eagle’s Nest Mine “would be unjustifiably terminated, eliminating comprehensive analysis of risks to water, wildlife and human health.”

“This vague proposed legislation represents a direct assault on the rule of law since it enables the province to make regulations designating zones in which ‘trusted proponents’ or designated projects may not have to comply with existing legal requirements enacted by the Ontario Legislature (and bylaws made by municipalities) that otherwise apply to every individual and corporation,” CELA lawyer Richard Lindgren wrote in a blog.

Granting discretionary dispensations or exemptions, in whole or in part, from protective legislation will likely result in the creation of contentious “law-free” zones in which environmental features, functions and values will be sacrificed to generate private profit for proponents, he said.

The long-discredited “jobs vs the environment” fallacy often invoked by elected officials and proponents to support de-regulation initiatives, governmental budget reductions, and staffing cuts within the public service is just not true, Lindgren said. “Good jobs can co-exist with good environmental protection – in fact they are both essential.”

CELA’s legal team did a 46-page assessment of Bill 5, along with Lindgren’s blog summarizing the impacts of the proposed legislation.

“If enacted, Bill 5 would dismantle critical legal safeguards for our environment and human health,” CELA said in a statement.

Bill 5 repeatedly fails to acknowledge Indigenous rights, including the Crown’s duty to consult and the principle of free, prior and informed consent outlined in the United Nations Declaration on the Rights of Indigenous Peoples, CELA said.

“CELA strongly urges the province to withdraw Bill 5 in its entirety.” CELA provided a detailed submission to the Ontario government asking it to withdraw Bill 5.

First Nations leadership also is calling on Premier Doug Ford and the Ontario government to put a stop to Bill 5, SooToday reported.

Chief Scott McLeod, Anishinabek Nation regional chief and spokesperson for Robinson Huron Waawiindamaagewin, said the Ontario government is essentially gutting environmental checks and balances while undermining the treaty relationship with First Nations in Robinson Huron Treaty territory.

 “He [Ford] simply is moving forward on this as if Ontario owns the resources outright, and has no obligations to the treaties that are within Ontario,” McLeod said.

“To allow lands of economic value that have been cited for development to be exempt from protective checks and balances, such as archaeological assessments and wildlife and ecosystem protections as proposed in this bill, will cost First Nations and Ontarians profoundly, exposing and setting back species at risk protection and leading to the destruction of First Nation burial sites and artifacts,” Anishinabek Grand Council Chief Linda Debassige said. CELA

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Canada’s future growth and prosperity depend on getting Indigenous economic reconciliation right: RBC

Canada’s future growth and prosperity depend heavily on getting Indigenous economic reconciliation right, according to a report by RBC.

“If not, the country’s ability to diversify our resource exports, enjoy independence and resiliency in strategic sectors and improve productivity, which has lagged that of other countries for years, are all at risk,” the report says.

Seventy-three percent of the 504 major resource and energy projects planned or currently underway in Canada run through or are within a 20-kilometre radius of Indigenous territories – namely, treaty, title unceded and consultation lands, RBC Thought Leadership research shows.

The value of the Indigenous equity opportunity of those projects alone is $98 billion over the next 10 years, the report says.

Examples of Indigenous economic reconciliation in action span the country, the report notes, including:

• In Kitimat, B.C., the Haisla Nation and Pembina Pipeline are working on the Cedar LNG project, a four-year partnership that will result in a $4-billion facility. Once operational, this majority Indigenous-owned facility is expected to generate $85 million in GDP annually.
• In several Manitoba and Nunavut communities, the Kivalliq Hydro-Fiber Link seeks to provide clean energy through a proposed 1,200-kilometre energy and telecommunications corridor connecting Nunavut with Manitoba’s grid.
• In the small southwestern Ontario town of Jarvis, the Oneida Battery Storage Project started commercial operations on May 7 and is one of North America’s largest battery-storage facilities. Partly owned by Six Nations of the Grand River Development Corporation, Oneida will provide much-needed capacity to Ontario’s strained electricity grid.

One of the key principles enshrined through Canada’s Constitution and case law is maintaining the Honour of the Crown – a legal concept characterizing the fiduciary duty imposed on the Government of Canada toward Indigenous Peoples, the report points out.

“One of the duties that this principle imparts on the Crown is the duty to consult and accommodate. When the Crown engages in an activity that could have a negative effect on an Aboriginal right or title, it must consult with the relevant Indigenous groups and accommodate these infringements.”

This duty has been affirmed through case law and is characterized in the Nation-to-Nation relationship between Indigenous Peoples and the federal government, the report notes.

The report says what’s needed now is finding ways of unlocking three critical elements:

• Capital: Indigenous ownership in major projects requires a mix of private and concessional financing tools, including loans, loan guarantees and grants. Without access to capital – a historic challenge for Indigenous Nations – many equity opportunities and entire projects may not get started.
• Capacity: Rights-based negotiations, along with commercial and legal discussions around major project development, are complex and require investing in capacity for everyone at the table – Indigenous Nations, governments and business – to ensure project success.
• Consent: The constitutional duty to consult and accommodate, the United Nations Declaration on the rights of Indigenous Peoples, case law, and decades of legal and political developments have cemented how important free, prior and informed consent (FPIC) is to project development. The downpayment needed to seek and achieve FPIC is long-term, trust-based relationships across all parties, which requires going beyond transactional project discussions.

When it comes to capital, current gaps include an infrastructure capital gap of up to $270 billion, a $30-billion gap in critical minerals and a $60-billion gap related to climate-aligned investments in carbon capture, electricity and renewables, the report says.

The various access-to-capital public tools currently available amount to about $20 billion. Based on the amount of private investment these concessional financing tools have crowded in, there is potential to mobilize close to $48 billion in Indigenous equity investments.

“This leaves a concessional financing gap of $20.7 billion and a private financing gap of $28.7 billion.”

While gaps remain, there’s more capital flowing than ever, the report says. “And it’s leading to action.”

Between 2022 and 2024, 111 Indigenous communities announced that they had acquired an equity stake in an infrastructure project, according to a report last April by the Toronto-based law firm Fasken Martineau DuMoulin LLP.

More than a quarter (26 percent) of those equity stakes were in Alberta, home to the $3-billion Alberta Indigenous Opportunities Corporation Loan Guarantee Program. 

In terms of capacity, the capacity gaps for Indigenous Nations put 85 percent of projects that pass through First Nations territory at risk, the report says. That’s an estimated $83.6 billion in project value.

The report says there needs to be more initiatives like Project Rocket, a partnership between 23 First Nations and Metis communities and Enbridge, which resulted in capacity building that benefited all parties.

The partnership involved the creation of Athabasca Indigenous Investments, the special-purpose vehicle behind the Indigenous Nations taking on a 12-percent equity stake – valued at $1.1 billion – in seven pipelines.

As for consent, expediting project permitting timelines, although an important objective to speed up project development, cannot be done in a vacuum without the Crown discharging its duty to consult, the report says.

“Proponents have an important responsibility and role to play in building deep trust-based relationships with Indigenous Nations, and through that process, seek and achieve consent.”

The Cedar LNG project on the West Coast illustrates how federal, provincial and Indigenous Nations can expedite the permitting process, according to the report.

The federal government, through a process called substitution, eliminated the duplication of two assessments for a single project.

The B.C. government worked in close partnership with the Haisla Nation to identify and mitigate environmental, social, health and economic impacts – a process that was accelerated in no small part because Haisla Nation is a co-owner in the project – resulting in a shorter and less contentious permitting process (notwithstanding ongoing concerns of the project by other Nations).

The Eskay Creek Consent-Based Decision-Making Agreement on a gold and silver mine in northern B.C., and the Squamish Nation Environmental Assessment Agreement involving the Woodfibre LNG plant and export terminal in B.C., both provide blueprints for how consent can be operationalized through the environmental assessment and permitting process.

Advancing all three elements – capital, capacity and consent – in parallel is necessary to bring Indigenous Nations along as true partners in economic development, RBC’s report says.

Some key principles for businesses and governments when seeking and maintaining consent are:

• Continue to prioritize Indigenous inclusion in the regulatory process.
• Build respectful relationships, including Government-to-Government and Corporate-Indigenous relationships.
• Create the conditions for informed consent.
• Identify whose consent needs to be sought.

Both the Liberal and the Conservative parties have promised to speed up development, permitting and financing of certain trade, infrastructure and resource projects in the national interest, the report says.

“Virtually all of the projects that will be fast-tracked will impact Indigenous interests and run through Indigenous territories. Fulsome Indigenous engagement and partnerships will determine the federal government’s ability to move at speed and scale.”

Canada’s ability to step in as a “pinch-hitter” on critical minerals mining and processing will depend on the country’s ability to tap into mineral-rich regions such as the Ring of Fire in Ontario and the Golden Triangle in B.C., the report says.

The Tahltan Nation, whose traditional territories cover 70 percent of the Golden Triangle, have been supportive of mineral exploration.

But Indigenous claims and partnerships are yet to be resolved in the Ring of Fire – “a question that will challenge other mining regions in Canada.”

Concludes the report: “Through a collective call for action, led by Indigenous Nations and closely supported by businesses and governments, there is an opportunity to generate shared prosperity – and get Canada building at speed and scale.” RBC

********************************************************************************************************************************Canada has few $1-billion unicorns and those aren’t scaling up or growing employees fast enough or seeing successful exits

Canada now has 27 “unicorns” (companies valued at $1 billion or more) in 2024 compared with only three in 2020, according to a study by Charles Plant.

Ten unicorns secured new funding at an average of more than $300 million per company, his study says.

However, the scaling-up rank of Canada’s unicorns has declined and they’re not growing their number of employees at a fast rate.

Also, it has been a long time since there has been a public exit of Canadian unicorns, indicating a challenge these firms have in obtaining liquidity for shareholders, says Plant, a consultant and co-CEO of nanotechnology firm ExactBlue Technologies.

His study, part of the Narwhal Project of which Plant is the founder, benchmarked Canadian private technology companies with US$10 million and more in capital – a category known as scale-ups – against 17,000 statistically relevant startups in North America.

Key findings of his study are:

• Toronto leads the race for unicorn creation with 12 while Vancouver has eight.
• The average Canadian unicorn one year ago had a Scaleup Rank of 74 percent and that fell to 70 percent this year. High-performing unicorns consistently have Scaleup Ranks above 90 percent. Unicorns below the 90-percent threshold are less likely to be able to continue to raise significant funding and less likely to go to an initial public offering (IPO).
• The two-year compound annual employee growth rate has also fallen from 53 percent two years ago to 23 percent last year and seven percent this year.
• Only nine of the 27 Unicorns have a Scaleup Rank above 90 percent, a level that if kept to should enable them to get to an IPO.
• The same nine are the only ones with an employee growth rate of above 10 percent.
• Canada ranks 8^th in the world in the production of unicorns and 5^th in unicorns per population for those companies in the top 10.
• Canada ranks 7^th in dollars invested in unicorns but 9^th in the top 10 in terms of the amount invested per unicorn. “Our rate of unicorn production, funding per population and funding per unicorn is low, not because of a lack of local capital but because of there being too few very high potential companies being produced in Canada.”
• Israel, a country one-sixth the size of Canada, has the same number of unicorns as Canada.

For comparison, the U.S. now has more than 750 unicorns, has seen 345 exit in an IPO, 263 exit through mergers and acquisitions (M&A) and 130 exit with a reverse merger.

Canada has had only 33 unicorns ever. Of these, only Nuvei has gone public on a U.S. exchange, Plant notes.

Nuvei grew revenue to $1.2 billion on $2.3 billion of capital and was acquired for $6.3 billion.

Coveo went public on the Toronto Stock Exchange and drove revenue to $126 million on $876 million of capital and is now valued at $517 million, he says.
“That’s it, only one successful IPO, one failed one and no M&A events since Shopify went public 10 years ago.”

Of Canada’s 27 remaining unicorns, Applyboard and PointClickCare have been on the list for five years.

Crunchbase’s algorithms think that only Ada, 1Password, Maropost, Dapper Labs, and Layer Zero Labs are likely to go to an IPO.

“We must be doing something seriously wrong if the U.S. can have 738 [unicorn] exits and Canada has two with only one successful one,” Plant says.

Fundamentally, Canada’s unicorns grow to inclusion on the list and then stall somehow, he says. Their stalls are seen in low employee growth rates.

It is frequently claimed that companies are reducing staff to improve profitability, Plant says. But he adds that he doesn’t buy this argument as growth is worth more than profitability any day. Others claim Canada’s unicorns are reaping the advantages of AI. But if this is true, why are so many more companies continuing to add employees? Plant asks. “Are they not using AI too?”

Plants says we need look at three potential factors that are stalling so many of Canada’s unicorns. These factors are markets too small for continued growth, weak product/market fit, and low sales efficiency.

“These all are a function of marketing and sales and are all areas of challenge for Canada, with little government understanding or investment to address.” Narwhal Project

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Corporate leaders should be wary of using AI to augment decision-making

Corporate leaders using AI to augment decision-making should be wary of risks in AI that can undermine the power and influence of strategic management roles, according to a study by the University of Saskatchewan (USask) and the University of Calgary.

The interdisciplinary research team conducted extensive interviews over 2 ½ years with the chairs of 27 large companies listed on the Toronto Stock Exchange, delving into how board processes work, how these experienced leaders exercise their power, and how AI affects that process.

“We identified a new risk [with] AI we call encroachment risk – the novel idea that AI can encroach on the power and influence of strategic roles and pose an organizational risk,” said co-author Dr. Vince Bruni-Bossio, PhD, associate professor at USask’s Edwards School of Business and USask’s acting provost and vice-president academic.

The team focused on board chairs as a case study, but the findings broadly apply to any strategic corporate role, said co-author Dr. Devan Mescall, PhD, a professor at the Edwards School of Business.

“When we got down to the details, we realized that the chairs’ tasks are multifaceted,” he said. Other team members and co-authors are Edwards School of Business professor Dr. Regan Schmidt, PhD and UCalgary Haskayne School of Business professor Dr. Anup Srivastava, PhD.

The team’s study was published in the Harvard Business Review journal.

In setting meeting agendas, for example, a chair can manage the board meeting agenda to shape the flow of conversation, exercise behind-the-scenes influence to guide how information is presented, and set the tone for a meeting.

The role also involves ensuring that board members have the right mix of experience to be effective, and the skillset to read the room, synthesize discussions, and reframe issues to shape how directors understand issues and reach conclusions.

These are considerations beyond the capabilities of an automated AI application, the authors suggest. Keeping these power-conduit tasks in mind, corporate leaders should establish clear policies for where AI can be used and where human oversight must be maintained, according to the study.

“By identifying key strategic roles and power-conduit tasks, as well as fencing AI involvement, board chairs can strike a balance between technological advancement and effective governance,” the team wrote.

“The goal should not be to resist AI but to integrate it in a way that preserves leadership influence and strengthens the board chair’s strategic objectives.” USask

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Canada’s space industry needs a new national body to lead the sector’s growth to $40 billion by 2040

Canada is well positioned to take advantage of the expanding global space economy but it will require a smart, sustained and well-executed strategy led by a new national body, according to a report by Deloitte.

Canada has the potential to grow a national space sector worth $40 billion by 2040, says the report. However, “Canada’s future in space is not guaranteed; it will require purposeful and effective public policy.”

The report, titled Reaching Beyond, was produced in consultation with space industry association Space Canada.

The Canadian space sector generates $5.5 billion in revenues annually and contributes $2.5 billion to Canada’s GDP, based on data collected by the Canadian Space Agency and Statistics Canada. Space is one of Canada’s most R&D-intensive industries.

More than 10,000 Canadians are directly employed by the space sector, with another 13,000 jobs supported by space sector activity.

Small and medium-sized companies account for more than 90 percent of Canadian space firms and about 30 percent of employment in the space sector.

In comparison, the global space economy has been estimated to be worth more than $600 billion and could exceed $2 trillion by 2040, given the current growth trajectory, Deloitte’s report says.

Canada’s space sector accounts for only about one percent of the current worldwide space economy, despite the country’s economy representing approximately two percent of the global GDP.

“If Canada can create the conditions to capture a share of the general economy, our space sector could be worth $40 billion by 2040,” the report says.

Also, because the field is inherently research-driven and has a global impact, the sector’s growth could help Canada meet long-standing challenges for innovation, scaling up and productivity.

However, Canada’s space sector faces challenges such as insufficient funding, competition for skilled labour, foreign interference and the impact of supply chain disruptions, according to previous studies, including the State of the Canadian Space Sector Report 2023.

The federal government’s funding for space activities is below that of many other Organisation for Economic Co-operation and Development countries, with projections indicating a decrease in the Canadian Space Agency’s (CSA) budget.

Lack of investment hinders the CSA’s ability to innovate and adopt new technologies, such as advanced propulsion systems, next-generation materials and autonomous landing techniques. This situation forces Canada to depend on technologies and infrastructures developed by other countries, de facto reducing its strategic and technological autonomy, according to a policy report by the Network for Strategic Analysis.

COVID-19 and global supply chain issues have negatively impacted the Canadian space sector, contributing to declines in revenues. 

Also, competition for experts in the space sector is high, leading to labor shortages within the industry.

“Improving Canada’s international cooperation in the field of outer space, with particular emphasis on the use of artificial intelligence, is crucial to strengthening its position on the world stage,” the Network for Strategic Analysis report said.

Canada became the world’s third country in space when the Alouette I satellite was launched into orbit in September 1962.

Canadarm, which first came into service in 1981, gave the country a prominent role during the U.S. space shuttle era  and led to Canada becoming the global leader in space robotics.

But by the turn of the century, according to Deloitte’s report, spending on Canada’s space program had plateaued and the country’s edge in the sector was slipping, even as allies, partners and real and potential adversaries moved in the opposite direction – placing more emphasis and bigger bets on space.

More recently, focus and funding for Canada’s space program have improved and Canadian space companies – from big, established players to ambitious startups – are full of ideas and energy.

However, today’s space race is as much about economics as it is about novelty, as much about national security as national honour, and as much about the private sector as government, Deloitte’s report says.

Canada’s space opportunities exist in two major areas

Activity in space can be divided into two broad categories: exploration and utilization.

Contemporary exploration efforts include the Artemis program, a NASA-led initiative that will take astronauts, including Canadian Jeremy Hansen, to the Moon and establish a longer-term presence there.

Hansen is scheduled to fly on the Artemis II mission, the first crewed mission to the Moon since 1972; the mission will orbit the Moon but not land on it.

However, U.S. President Donald Trump’s Fiscal Year 2026 proposed budget blueprint calls for a 24.3-percent reduction to NASA’s top-line funding and could slash the space agency’s science budget by 47 percent.

Trump’s proposed budget would scrap the Space Launch System (SLS) rocket and the Orion spacecraft, both in development and both intended for crewed travel to the Moon in the Artemis program.

Under the proposed budget, the SLS and the Orion capsule would be retired after Artemis III, instead relying on commercial systems to support subsequent NASA lunar missions.

Also marked for elimination is the Gateway spacecraft, a small space station planned for lunar orbit.

Internationally, space exploration endeavours include the James Webb Space Telescope, a successor to the Hubble telescope, and European, Chinese, Indian, Japanese, Korean, Israeli and United Arab Emirates missions to the Moon and, in some cases, asteroids and the Sun.

The other activity in space, utilization, relies on satellites to provide a range of practical services such as GPS-based systems and Earth-observation systems.

“Most of the economic action is in the utilization sector – and that action is growing exponentially,” Deloitte’s report notes.

According to the report, three technological advantages have led to the surge in space utilization:

1. The cost of launching people and cargo into space has plummeted, from more than $85,000 per kilogram of payload with the Space Shuttle in 1981 to as low as $1,400 per kg of payload now.
2. Satellite technology has undergone a substantial transformation, shifting from big, costly, complicated satellites a generation ago to satellites that are often small, inexpensive, relatively standard and manufactured using more automation and techniques like 3D printing.
3. The ability to digest and find practical applications for satellite data has improved dramatically.

The number of satellites currently in orbit is approximately 11,000, a fivefold increase from just five years ago. It is estimated that by 2030, there will be up to 100,000 satellites orbiting the Earth.

“In short, space utilization has entered a boom phase that’s likely to persist into and beyond the middle of the century as technologies continue to progress and costs continue to fall,” the report says.

Greatest opportunities are where Canada’s existing and emerging needs intersect

Canada’s opportunities will be greatest where existing and emerging needs intersect with the country’s capacities and comparative advantages, according to the report.

Given the wide array of potential applications of satellites and the data they collect, it’s neither feasible nor advisable at this time to zero in on just one or two areas, the report says. “Many [areas] may hold opportunity for Canadian industry working with an appropriate framework of government policies and support.”

Significant opportunity areas in the utilization segment can be grouped into three categories;

1. Upstream design, manufacture, deployment and operation of satellites and ground stations.

Canada is poised for success in this area, although there’s lots of competition, the report says. For some time, Telesat – Canada’s leading satellite operator – has been planning and designing a cutting-edge satellite constellation called Telesat Lightspeed and has now teamed with the country’s leading satellite manufacturer, MDA Space, which will act as the prime contractor for building the constellation.

2. Downstream use of satellite-communication services and Earth-observation data.

Among the most promising areas for downstream use are:

• Climate change mitigation and adaptation.
• Precision agriculture.
• Forestry management.
• Ensuring supply-chain efficiency.
• Optimizing fleet and parking management.
• Insurance: Giving insurers information to enable evidence-based risk assessment and the setting of premiums.
• Disaster response.
• Border protection.
• Defence and intelligence.

3. Maintenance and protection of satellite infrastructure.

Keeping a careful eye on the thousands of satellites and fragments above Earth, enabling clear communication between them, and undertaking active flight operations – all of which may benefit from the increasing application of AI – can deconflict orbits and facilitate quick responses if collisions appear likely.

Removing debris, in part by employing robotics expertise, can help maintain a cleaner orbital environment.

In-space servicing, assembly and manufacturing can contribute to more sustainable, longer-functioning satellites.

When it comes to space exploration opportunities, some of the best opportunities are in areas where Canada has significant existing capabilities and in terrestrial as well as space-based applications of innovations. These could include:

• Robotics: Thanks in large part to Canadarm and Canadarm2, the country is already a leader in this area.
• Health: Solutions that keep astronauts healthy – and allow for diagnoses and interventions when issues arise – will be essential with longer missions. Many of these technologies can also be adopted for use in remote locations, including isolated Indigenous and northern communities.
• Food: Canada’s strong agricultural sector can help address the need to grow nutritious food for astronauts spending long periods in space, including on the Moon and, potentially, on a mission to Mars.
• Mining and energy: Mining technologies adapted for space will be required to get water and produce fuel to support long-term missions. Such technologies may also someday be applied to extract precious metals from asteroids for use on Earth. Canada’s mining industry could play a role in these efforts.

Despite the rise in commercial space activity, space remains a domain in which public policies and programs – and the choices governments make on purchasing and delivering their own services – have an outsized effect on the ability of private firms to survive and thrive, Deloitte’s report notes.

Over the past decade, Canada’s national space program has gotten many things right, the report says, including:

• The modernized Canada’s Space Policy Framework, released in 2014, emphasized commercialization and the role of the private sector.
• The 2019 space strategy for Canada, Exploration, Imagination, Innovation, set out ambitious priorities that included: connecting all Canadians; supporting and harnessing work on space-related health and food growth; creating a modern regulatory framework to facilitate the growth of the commercial space sector; and using space-based data to support innovation.
• The 2022 strategy for satellite Earth observation (EO), Resourceful, Resilient, Ready, stressed the significance of EO data across a wide range of areas – including climate change mitigation and adaptation – and promised measures such as open access to EO data.

Significant incremental budgetary commitments – a total of $8.7 billion since 2016, with expenditures anticipated over the coming years and decades – have been made by the federal government through a number of programs and vehicles.

“However, in an age when governments and companies around the world are determinedly moving into space, these important steps need to be quickly built upon if Canada is to avoid falling behind, losing business and talent to others, and failing to realize the potential for a national space sector worth $40 billion by 2040,” Deloitte’s report says.

Six critical areas where the government should act

The report says there are six interrelated areas in which the government can act to maximize the odds for a thriving space sector:

1. Strengthening governance.

Success in space requires cooperation and coordination between and across government organizations that make space-related policies and regulations, allocate funding for space-related research and product development, buy space assets and services, and make significant use of space data.

That is why the U.S. has a National Space Council and other countries and jurisdictions – from the U.K. and Australia to India and Japan – have their own space-related governance arrangements that bring senior decision-makers together.

“The Government of Canada should put in place a similar arrangement,” Deloitte’s report says. The current reliance on ad hoc and project-specific working groups and collaboration between more junior officials can be helpful, but it isn’t sufficient, it adds. “If Canada is to meet the moment in space, its policies and programs must be steered by an integrated, focused, national body.”

The federal government announced in Budget 2024 that it would create a National Space Council, heeding repeated calls from industry association Space Canada. However, the new space council has yet to be launched.

2. Modernizing the legal framework.

The legislative and regulatory framework governing Canada’s space activity is in urgent need of modernization, the report says.

Outdated provisions and a lack of clear rules can create uncertainty and risk for private sector players looking to pursue and invest in big ideas, putting them at a disadvantage compared with those in jurisdictions with more fully developed legal regimes.

Canada needs to accelerate its efforts to establish a clear regulatory framework for space, the report says. This framework should ensure timely licensing and permitting decisions and include rules that are outcome- and performance-based, contain built-in mechanisms for timely and agile adjustments, and leave room for “sandboxes” in which novel approaches can be tested and refined.

3. Improving funding and financial instruments.

Even after the recent funding increases, Canada’s space-related spending is dead last among G7 countries when measured as a percentage of total GDP, the report notes.

A reasonable goal would be to raise funding as a proportion of GDP to match the G7 average, while considering how it can be strategically leveraged to simultaneously help Canada meet the NATO defence-spending target of two percent of GDP, the report says.

Government funding should move more forcefully into areas where private money is still hesitant to venture alone, the report recommends.

A revamped funding approach should include a larger tool kit of funding strategies that would entail not just traditional grants and contributions, but also:

• An equity option under which government would take a minority stake in some space companies, creating the potential for an eventual return on taxpayers’ investments.
• A debt stream, in which loans would be repayable at favourable rates once a firm has achieved a certain revenue threshold.
• The partial backstopping of private investments by providing demand guarantees to help reduce risk and increase the patience of capital.
• An insurance option, where the government could help insure undertakings that the private market may consider too new to fully access.

4. Streamlining procurement.

A revised space procurement process based on calibrated risk management could include:

• Making the “Canadian-ness” of a bid team a material consideration in the assessment of proposals – consistent with practices in the U.S., the EU and other jurisdictions.
• Having the government play a larger role, such as the anchor or early customer for Canadian technologies and players.
• Updating Canada’s Industrial and Technology Benefits Policy to ensure it has real impacts for high-potential segments of the country’s space sector.
• Allowing for early and frank conversations between government and industry representatives, with the aim of conveying emerging demands, exploring technological options and ensuring subsequent requests for proposals are appropriately tailored to market realities and spur innovation.
• Tightening timelines, from the identification of a need through the review of proposals, the awarding of contracts and the delivery of a capability.
• Allowing winning bidders to retain and use as much of the intellectual property from the project as is feasible.

5. Expanding collaboration.

Government can make an important contribution through a number of measures, including:

• Establishing a virtual platform for companies and researchers to connect.
• Facilitating collaboration between government scientists and private sector players.
• Supporting a network of incubators for space startups, which could be modelled on the facilities in Montreal and Downsview Park that serve the aerospace industry.
• Convening events that bring together those from academia, the private sector and government who are dedicated to space.

6. Enhancing the availability of data.

To achieve this, the Canadian Space Agency has promised its Digital Earth Canada (DEC) initiative which needs to “move forward without delay” and a DEC portal should make as much data available as possible in as usable form as possible, in real time, the report says.

“Strengthening Canada’s position in space is a strategic imperative,” the report concludes. “For the sake of the country’s economic competitiveness and productivity – and to help ensure national security and critical services for citizens – Canada needs to bring a determination to the new space race.”

See also: Canada needs its own space launch capability to fuel growth in the country’s space sector (The Short Report: February 5, 2025)

THE GRAPEVINE – News about people, institutions and communities

Stephen MacNeil, associate professor in Wilfrid Laurier University’s chemistry and biochemistry department in the Faculty of Science, was named a 2025 3M National Teaching Fellow. Widely regarded as Canada’s highest teaching honour, the award recognizes exceptional teaching, pedagogical innovation and educational leadership at the university and college level. MacNeil, who teaches organic chemistry, was an early adopter of blended learning, which fuses the best of online activities and face-to-face class time, and “flipped” classrooms, where students engage with content before class and use classroom time for active learning. At the core of his teaching is a metacognitive program that prompts students to “think about their thinking” and helps students understand and improve how they learn. Wilfrid Laurier University

Vancouver-based Clio, a cloud-based legal technology company, appointed longtime tech executive John Foreman as its new chief product officer. In this role, Foreman will lead Clio’s product strategy and delivery across its expanding multi-product platform. Foreman brings over 15 years of leadership experience in high-growth software-as-a-solution companies, most recently serving as chief product and marketing officer at Podium. Clio

Toronto-based Amplify Capital announced that Craig Hunter joined as a partner. Hunter had a role at Uber in its early days, served as the CEO of Toronto-based coding bootcamp Bitmaker (later acquired by General Assembly), worked as the general manager of food service app Ritual, and has been a prolific angel investor. Hunter joined Amplify Capital following the departure of partner Daniel Armali who resigned earlier this year for personal reasons. BetaKit

Damien Steel stepped down for personal reasons as CEO of Quebec-based Deep Sky, a carbon removal startup founded by Hopper CEO Frederic Lalonde. Steel, previously managing partner at OMERS Ventures, joined Deep Sky in August 2023. Deep Sky’s chief operating officer Alex Petre will replace him as CEO. Last November, the company secured a 10-year carbon credit deal with RBC and Microsoft, and received a US$40-million grant from Bill Gates’s Breakthrough Energy fund a month later. Decoder

University of Saskatchewan (USask) President Peter Stoicheff responded to an opinion article written by Peter MacKinnon, former USask president. In the piece, MacKinnon described a required equity, diversity and inclusion (EDI) course for USask staff as “part of an ideological crusade” that discouraged dissent and disparaged merit. In his response, Stoicheff described the accusations as “serious and misguided enough to warrant an informed response.” He explained that universities must maintain a balance between EDI and the principles of academic freedom and excellence, but Canadian universities are navigating this balance successfully. To this end, Stoicheff pointed to several markers of USask’s success since introducing its EDI policy, such as its rise in international rankings. He concluded by thanking “those who take on the daunting task of leading this complex and difficult work.” USask

Nipissing University in North Bay, Ont., received a $5-million gift from The Hilary and Galen Weston Foundation to expand Rare Dementia Support Canada. The funding will establish a national centre at Nipissing to enhance research, education and support services for those affected by rare and young-onset dementias. The investment will be used to support key hires, integrate advanced support technologies, and strengthen national and international partnerships. Nipissing University

The University of Calgary’s Faculty of Veterinary Medicine received a $1-million donation from Hill’s Pet Nutrition Canada to create a professorship focused on animal nutrition. The Hill’s Pet Nutrition Professorship in Animal Nutrition will refine the animal nutritional curriculum for the university’s Doctor of Veterinary Medicine program, create post-program training opportunities in the area, and foster connections between practitioners. The inaugural role will be held by Dr. Glenna Mauldin, a UCalgary associate professor (teaching) in small animal oncology and nutrition. UCalgary

Langara College restricted DeepSeek AI on all of its campus networks and devices. This decision – which the college says is aligned with national cybersecurity guidance and postsecondary sector best practices – is a precautionary measure reflecting concerns about DeepSeek’s data handling practices, including its collection of personal data and weak encryption standards, Langara said. The restriction means that DeepSeek websites and applications will not be accessible via Langara networks or college-owned devices. Langara College

Western University’s Centre for Teaching and Learning released the Domains of AI Awareness for Education, a new resource designed to support critical reflection on Generative AI. Created by Dani Dilkes, Western University e-learning and curriculum specialist, the framework outlines seven domains – knowledge, ethics, skill, pedagogy, values, affect, and interconnectedness – that can help educators examine how AI aligns with their teaching, beliefs and social contexts. The resource is accompanied by an eight-week reflective challenge and a self-assessment quiz that encourages users to consider where they fall on the AI-adoption spectrum. Western University

Six cégeps in Quebec formed a consortium led by Institut maritime du Québec (IMQ) to launch a concerted, sustainable response to the training needs of the shipbuilding sector. The consortium includes Cégep de Chicoutimi, Cégep de la Gaspésie et des Îles, Cégep de Jonquière, Cégep de Lévis, Cégep de Rimouski (with which the IMQ is affiliated), and Cégep de Sorel-Tracy. These institutions will pool their expertise to engage in a variety of initiatives, such as the delivery of modular courses, integration of related fields such as robotics and maritime project management, and research and innovation efforts with companies in the sector. Sorel-Tracy magazine

Québec Liberal MP Michelle Setlakwe issued a statement condemning a $151-million cut to the cégep education system and voicing her support of cégep leaders who have spoken out against Quebec’s Higher Education Minister Pascale Déry. Setlakwe, who serves as the official opposition critic for higher education, pointed out that the Quebec government has only increased cégep operating grants by 0.3 percent, which is insufficient to keep up with costs and the growing student population. Speaking to La Presse, Fédération des cégeps CEO Marie Montpetit and several cégep leaders warned that these cuts will have repercussions, such as reduced student services, extracurricular activities and other potentially irrevocable changes. Quebec Liberal Party

At least seven universities in Quebec are facing a combined $200-million shortfall, CBC and Radio-Canada reported. Université de Montréal is projecting a shortfall of $9.7 million, while Concordia University anticipates a deficit of nearly $32 million. Christian Blanchette, rector at Université du Québec à Trois-Rivières, said two major factors have created this situation: a freeze on university network investments and the federal government's implementation of quotas on international student numbers. Blanchette said that the quotas have made international students – especially Francophone students – feel unwelcome, which in turn has resulted in decreased applications. Martin Maltais, president of Association canadienne-française pour l’avancement des sciences, discussed the need for a strategy for internationalization within higher education. Both Blanchette and Maltais noted how the postponement of consultations about the province’s next multi-year immigration plan will create recruitment delays and uncertainty in the postsecondary system. CBC, Radio-Canada

The Royal Military College of Canada (RMC) in Kingston, Ont. is pausing seven undergraduate programs for the 2025–26 academic year due to persistently low enrolment. Following a directive from the Commander of Military Personnel to improve sustainability and efficiency, RMC conducted a review of its offerings and identified programs that had graduated fewer than 10 students annually over five years. The paused programs include Business Administration and Economics, Chemistry, Economics, Electrical Engineering, English, French, and Mathematics. RMC told the Whig Standard that current students will be allowed to complete their studies. Whig Standard

Georgian College announced it is pausing operations at its John Di Poce South Georgian Bay Campus in Collingwood, Ont., as of September 1, 2025. The college said the campus has experienced declining enrolment over the years, making it increasingly difficult for the college to offer an “unrivalled experience” for students. A full transition plan is underway to support impacted students and employees. Approximately 90 full- and part-time postsecondary incoming and returning students, primarily in the Social Service Worker and Personal Support Worker programs, are impacted by this decision and all have been notified of the change. All postsecondary programs in South Georgian Bay are offered at other Georgian campuses. Georgian College

A new research project supported by CQDM and Brain Canada aims to determine why some drugs cause hallucinations while others don’t – even when they act on the same part of the brain. Peter Chidiac, a physiology and pharmacology professor at Western University, in collaboration with researchers at McGill University and CHU Sainte-Justine in Montreal, will investigate new compounds that could offer the potential benefit of psychedelics in treating mental health conditions – without the hallucinogenic side effects. Psychedelic compounds have shown promise in treating mental health conditions, but intense side effects limit their regular use. The research project focuses on a serotonin receptor called 5HT2a, which plays a key role in how certain psychedelic drugs – like LSD or psilocybin – alter perception. But not all drugs that activate this receptor cause hallucinations. Serotonin, for example, is a naturally occurring chemical that also activates 5HT2a, but without any of the psychedelic effects. Researchers think the difference may lie in how 5HT2a works together with other nearby receptors in the brain. These receptor complexes, known as heteromers, may influence how the brain responds to different drugs. In partnership with Diamond Therapeutics, Chidiac’s lab will test new experimental compounds to see how they affect these receptor complexes, comparing them to known psychedelics and non-psychedelics, such as serotonin. The goal is to find new psychiatric medications that activate the brain’s healing pathways without the hallucinogenic effects, leading to safer, more effective treatments for conditions like depression, anxiety and post-traumatic stress disorder. Western University

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