The Saskatchewan government is going to skip the $3-million grant to food-delivery business Skip the Dishes.
The controversial agreement was announced earlier this year, just after the provincial election in April.
On Wednesday, the government said the company had not lived up to its obligations under the contract.
Economy Minister Jeremy Harrison said the first payment, of $750,000, was never cashed.
"The money was advanced for the purpose of hiring employees and for acquiring space and those conditions weren't met so that's, I assume, why they didn't cash the cheque," he told reporters.
Harrison said he directed the cheque be cancelled in the past week.
The Opposition NDP said this was a strange deal from the beginning, including its sudden demise.
No one from Skip the Dishes could be reached for comment.
The government said the company could apply again for job grants, but Premier Brad Wall has said that future deals would not benefit a single company to such an extent.
The Manitoba government signed a $5.5-million agreement with Skip the Dishes in late 2015.
A spokesperson with the provincial government says that deal is in the second year of a three-year agreement and the company has met all of its obligations for hiring commitments and training activities.