The company ran short of funds and production space at the same time as the Canadian government closed its airbase in Gimli, Manitoba.
The provincial government of Manitoba, in an effort to encourage industry in the province, promised Saunders funding if they would move to Gimli; the company agreed.
The company produced thirteen of its Saunders ST-27 aircraft, which were converted de Havilland Herons.
The company then began work on the ST-28, intended to be a commuter/taxi aircraft, also based on the Heron.
Shortly thereafter, the government of Manitoba withdrew funding.