In 1960, the Royal Canadian Navy announced that the HU2K has been identified as the frontrunner for their own requirement for an anti-submarine warfare helicopter; this choice was confirmed when the Treasury Board of the Canadian government gave its approval for the initial procurement of 12 rotorcraft from Kaman at a price of $14.5 million. However, the Canadian purchase was disrupted by multiple factors, including Kaman's decision to abruptly raise the estimated price of the initial batch to $23 million; as the same time, there were concerns amongst officials that the manufacturer's projections of both the weight and performance criteria has been overly optimistic. In response, the Canadian Naval Board decided to hold off on issuing its approval to proceed with the HU2K purchase until after the US Navy had conducted sea trials with the type. During these sea trials, it was revealed that the HU2K was indeed overweight and underpowered; in light of this inferior performance, the HU2K was deemed to be incapable of meeting the Canadian requirements. Accordingly, during late 1961, the competing Sikorsky CH-124 Sea King was selected to fulfil the intended role instead.