Mr. Rishi Sharma reports

VELAN SHAREHOLDERS APPROVE ACQUISITION BY FLOWSERVE

Holders of subordinate voting shares (VS) and of multiple voting shares (MVS) of Velan Inc. have approved the proposed arrangement resolution in connection with the arrangement agreement made as of Feb. 9, 2023, among Velan, 14714750 Canada Inc. (the purchaser) and Flowserve U.S. Inc., as amended by the first amendment to the arrangement agreement dated March 27, 2023, pursuant to which all of Velan's issued and outstanding shares would be acquired for $13 per share in cash by the purchaser, a wholly owned subsidiary of Flowserve Corp.

The arrangement resolution had to be approved by not less than two-thirds of the votes cast at the special meeting of shareholders of Velan held earlier today by shareholders virtually present or represented by proxy and entitled to vote at the meeting, and also had to be approved by a simple majority of the votes cast at the meeting by each of the holders of SVS and holders of MVS, voting by class, virtually present or represented by proxy and entitled to vote at the meeting, excluding for this purpose any person required to be excluded pursuant to Section 8.1(2) of Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions.

At the meeting, Velan shareholders carrying an aggregate of 82,540,128 votes, representing approximately 98.44 per cent of votes entitled to be cast at the meeting, were represented virtually or by proxy at the meeting. The resolution relating to the arrangement was approved by 99.99 per cent of the votes cast by all Velan shareholders, 100 per cent of the votes cast by Velan's MVS holders and 99.91 per cent of the votes cast by Velan's SVS holders, excluding for the last two any person required to be excluded pursuant to Section 8.1(2) of Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions.

The arrangement remains subject to the approval of the Superior Court of Quebec and the satisfaction or waiver of other customary closing conditions, including the regulatory approvals and clearances. The court hearing for the final order to approve the arrangement is expected to take place on May 16, 2023, and the completion of the arrangement is now expected to occur in the third quarter of 2023 (calendar year).

About Velan Inc.

Founded in Montreal in 1950, Velan is one of the world's leading manufacturers of industrial valves. Velan is a family-controlled public company, employing approximately 1,650 people with manufacturing facilities in nine countries. Velan is a public company with its shares listed on the Toronto Stock Exchange under the symbol VLN.

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