Backgrounder: Strengthening Atlantic Canada’s defence capabilities in Newfoundland and Labrador

March 19, 2026 · St. John’s, Newfoundland and Labrador · Atlantic Canada Opportunities Agency (ACOA)  

The Government of Canada is providing an investment of $16 million under the Regional Defence Investment Initiative (RDII) to five businesses in Newfoundland and Labrador.

PAL Aerospace Ltd.
St. John’s, Newfoundland and Labrador
Commercialize a new missionized aircraft solution to offer enhanced capabilities that strengthen Canada’s potential in maritime and northern surveillance, and Arctic sovereignty.
Investment: $7,500,000 (repayable)

Virtual Marine Technology Inc. 
Paradise, Newfoundland and Labrador
Develop and deliver marine simulation-based training solutions for defence. 
Investment: $2,500,000 (repayable)

Solace Power Inc.
Mount Pearl, Newfoundland and Labrador
Enhance capabilities in delivering wireless power and data solutions in harsh environments, including the Arctic.
Investment: $4,000,000 (repayable)

CoLab AI Inc.
St. John’s, Newfoundland and Labrador
Deliver AI-powered collaboration software solutions to meet defence markets requirements.
Investment: $1,000,000 (repayable)

Rutter Inc.
St. John’s, Newfoundland and Labrador
Develop and deliver enhanced radar technologies for naval and Arctic defence operations.
Investment: $1,000,000 (repayable)

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News Release: Ministers Fraser and Thompson announce $16M in major federal defence investment in Newfoundland and Labrador