Stock Ticker: VLN.TO
Velan Inc.’s controlling shareholder, Velan Holding, has agreed to sell its majority stake to Birch Hill Equity Partners, impacting Velan Inc.’s ownership structure and governance.
Velan Inc. Announces Sale of Majority Stake to Birch Hill Equity Partners
Velan Inc. (VLN.TO) has disclosed a significant development in its ownership structure, with its controlling shareholder, Velan Holding, agreeing to sell 72.1% of the company’s outstanding shares to funds managed by Birch Hill Equity Partners Management. The transaction involves the sale of 15,566,567 multiple voting shares and one subordinate voting share at a price of C$13.10 per share, amounting to total proceeds of C$203.9 million to Velan and associated entities.
Investor Rights Agreement and Board Nominees
As part of the deal, Velan will enter into an investor rights agreement with Birch Hill, granting the latter the authority to appoint up to four out of seven nominees to the Board. This appointment privilege is contingent on Birch Hill and its affiliates maintaining ownership of more than 40% of the voting rights attached to Velan Inc.’s issued and outstanding shares.
