MONTREAL, June 15, 2026 /CNW/ – Velan Inc. (TSX: VLN) (“Velan” or the “Company”) today announced the closing of the sale by its controlling shareholder, Velan Holding Co. Ltd. (“Velan Holding”), of its controlling interest in the Company to funds managed by Birch Hill Equity Partners Management Inc. (“Birch Hill”), together with planned board and management changes marking the next phase of Velan’s strategic growth.
Transaction Details
Velan Holding, the sole holder of the Company’s 15,566,567 multiple voting shares and holder of one subordinate voting share, representing approximately 72.1% of the Company’s outstanding shares and 92.8% of its aggregate voting rights, sold its interest to Birch Hill at a price of C$13.10 per share, for aggregate gross proceeds of C$203,922,040.80 to Velan Holding and two other entities associated with shareholders of Velan Holding (the “VH Transaction”).
As part of a pre-closing reorganization, Velan Holding converted 2,290,075 of its multiple voting shares into an equal number of subordinate voting shares. Accordingly, upon completion of the VH Transaction, Birch Hill acquired 13,276,492 multiple voting shares and 2,290,076 subordinate voting shares, representing approximately 72.1% of the Company’s outstanding shares and 91.9% of its aggregate voting rights.
While Velan was not a party to the VH Transaction, the Company facilitated the transaction pursuant to the cooperation agreement entered into with Birch Hill, as previously announced on January 14, 2026, including in connection with obtaining applicable regulatory approvals.
Leadership Comments
As Birch Hill COO and Partner Pierre Schuurmans commented at the time of the transaction announcement, “We have immense respect for the 75-year legacy the Velan family has built, rooted in decades of engineering excellence and manufacturing expertise across critical global industries. We are proud to invest in a company with such strong Quebec heritage and global presence. We look forward to building on this foundation and supporting the Company’s continued growth and innovation.”
Board and Management Changes
With the closing of the VH Transaction, Velan is announcing changes to its board of directors (the “Board”) and management changes that reflect the Company’s growth trajectory, and support business continuity.
Ivan Velan, Peter Velan, Rob Velan, and Tom Velan, each of whom was serving on the Board as a representative of the Company’s previous controlling shareholder, have resigned from Velan’s Board. The Company thanks each of them for their longstanding service and contributions.
Patrick Duncan, a Partner at Birch Hill, has been appointed Chairman of the Board. Joshua Lundy, Jim Mannebach, and Shauna Gamble have been appointed to the Board as Birch Hill nominees, with Ms. Gamble serving as an independent director. Daniel Desjardins, Edward Kernaghan and Suzanne Blanchet will continue to serve as independent directors, with Daniel Desjardins being appointed lead director.
