A popular annual sailing regatta in Cape Breton has been cancelled due to a lack of federal funding, says the CEO of Destination Cape Breton.

Race the Cape, which began in 2013, is a weeklong, point-to-point racing event in July that covers more than 320 kilometres. As many as 40 sailboats have taken part in the annual marine competition.

Funding had previously come from the Atlantic Canada Opportunities Agency, through its affiliate Enterprise Cape Breton Corporation. But ECBC was phased out in 2014 and its three-year contract with Race the Cape ran out in 2016.

Destination Cape Breton took over the event in 2016 from the original organizers. Destination Cape Breton CEO Mary Tulle said criteria for funding has changed.

"This is one of those tragic, very unfortunate results with ECBC no longer being. The race simply does not qualify under the new parameters of ACOA," she said.

The race course is broken into six legs. Starting in St. Peters, it follows a challenging trip through Bras d'Or Lake and along the Atlantic coast over five days, concluding in Sydney.

It's too early to say if organizers will try another avenue of funding to keep the event going, Tulle said.