Mr. Rishi Sharma reports

VELAN ANNOUNCES THE CLOSING OF THE SALE OF ITS FRENCH SUBSIDIARIES TO FRAMATOME

Velan Inc.'s wholly owned subsidiary, Velan Valves Ltd. has closed the sale of 100 per cent of the share capital and voting rights of its French subsidiaries, Segault SAS and Velan SAS, to Framatome SAS, a world leader in nuclear energy, for a purchase price of $184.1-million (U.S.) (170 million euros), with the benefit of the transfer of an intercompany loan of $24.4-million (U.S.) (22.5 million euros), for total consideration to the company of $208.4-million (U.S.) (192.5 million euros), which was previously announced by the company on Jan. 14, 2025.

Velan plans to use a portion of the proceeds from the France transaction to finance the permanent divestiture of its asbestos-related liabilities to an affiliate of Global Risk Capital at a cost to the company of $143-million (U.S.). The closing of the asbestos divestiture transaction is expected to occur next week.

Currency

All dollar amounts set forth in this press release are in U.S. dollars, except where otherwise indicated. On March 28, 2025, the rate published by Bloomberg for the conversion of euros into U.S. dollars was one euro to $1.0828 (U.S.) and of U.S. dollars into euros was $1 (U.S.) to 0.9235 euro.