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

MONTREAL, March 31, 2025 /CNW/ - Velan Inc. (TSX: VLN) ("Velan" or the "Company"), a world-leading manufacturer of industrial valves, announced today the closing of the sale, by the Company's wholly-owned subsidiary, Velan Valves Limited, of 100% of the share capital and voting rights of its French subsidiaries, Segault SAS and Velan S.A.S., to Framatome SAS, a world leader in nuclear energy, for a purchase price of US$184.1 million (€170 million), with the benefit of the transfer of an intercompany loan of US$24.4 million (€22.5 million), for total consideration to the Company of US$208.4 million (€192.5 million) (the "France Transaction"), which was previously announced by the Company on January 14, 2025.

Velan plans to use a portion of the proceeds from the France Transaction to fund the permanent divestiture of its asbestos-related liabilities to an affiliate of Global Risk Capital at a cost to the Company of US$143 million (the "Asbestos Divestiture Transaction" and, together with the France Transaction, the "Transactions"). The closing of the Asbestos Divestiture Transaction is expected to occur next week.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

Certain statements made in this news release are forward-looking statements within the meaning of applicable securities laws, including, but not limited to, statements related to the use of the proceeds from the France Transaction, the timing of the Asbestos Divestiture Transaction, the expected benefit of the Transactions and other statements that are not material facts. Often, but not always, forward-looking statements can be identified by the use of forward-looking terminology such as "may", "will", "expect", "believe", "estimate", "plan", "could", "should", "would", "outlook", "forecast", "anticipate", "foresee", "continue" or the negative of these terms or variations of them or similar terminology. Although the Company believes that the forward-looking statements in this news release are based on information and assumptions that are current, reasonable and complete, these statements are by their nature subject to a number of factors that could cause actual results to differ materially from management's expectations and plans as set forth in such forward-looking statements, including, without limitation, the possibility that the Asbestos Divestiture Transaction will not be completed on the terms and conditions, or on the timing, currently contemplated, and that it may not be completed at all. Readers are cautioned not to place undue reliance on the forward-looking statements and information contained in this news release. Velan disclaims any obligation to update any forward-looking statements contained herein, whether as a result of new information, future events or otherwise, except as required by law.

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 €1.00 = US$1.0828 and of U.S. dollars into euros was US$1.00 = €0.9235.

SOURCE Velan Inc.

Rishi Sharma, Chief Financial and Administrative Officer, Velan Inc., Tel: [phone]