Mr. Rishi Sharma reports

VELAN STRENGTHENS FINANCIAL POSITION WITH COMPLETION OF ASBESTOS LIABILITY DIVESTITURE

Velan Inc. has completed the permanent divestiture of its asbestos-related liabilities to an affiliate of Global Risk Capital at a cost to the company of approximately $143-million (U.S.). Originally announced on Jan. 14, 2025, the asbestos divestiture transaction marks a significant step in Velan's strategic financial realignment.

The company financed the asbestos divestiture transaction with a portion of the proceeds from the sale by the company's wholly owned subsidiary, Velan Valves Ltd., of 100 per cent of the share capital and voting rights of its French subsidiaries, Segault SAS and Velan SAS, to Framatome SAS, which closed earlier this week.

Advisers

In connection with the asbestos divestiture transaction, Ducera Partners LLC is acting as exclusive financial adviser to the company. Legal counsel was provided by Latham & Watkins LLP in connection with the asbestos divestiture transaction and related corporate matters. Davies Ward Phillips & Vineberg LLP is also acting as legal adviser to the company. Jones Day is acting as legal adviser to Global Risk Capital.