MONTREAL, July 17, 2020 (GLOBE NEWSWIRE) -- Velan Inc. (TSX: VLN) (the “Company”), a world-leading manufacturer of industrial valves, is pleased to announce the completion and funding on July 8th 2020 of a new financing agreement with Bank of Montreal, acting as lead-arranger and sole bookrunner for the syndication of a new credit facility. Pursuant to this transaction, the Company and its US subsidiary company, Velan Valve Corp., refinanced its demand credit facilities and put in a place a new 3-year revolving facility of USD $65,000,000. The facility will be used for general corporate purposes and will provide the Company’s North American operations with the necessary liquidity to pursue its strategic objectives, including the V20 Transformation Plan.
Réjean Ostiguy, CFO of Velan Inc., said, “This new financing provides the necessary liquidity to complete our restructuring and transformation plan, as well as the necessary capital to pursue future growth initiatives while strengthening our financial position as the world economy enters a period of uncertainty. BMO has been a long-time partner of Velan and its renewed support demonstrates the institution’s confidence in our ability to execute on our strategy.”
"We are excited about this new financing which will support all of Velan North American operations. This transaction highlights BMO’s strengths and capabilities as a North American Bank working with companies that have operations and cross border banking needs in Canada and the United States." said René Douville, Senior Vice-President and Head Corporate Finance – Quebec.
More information on the financing arrangement can be found in the Company’s Q1 quarterly financial statement filings.
About Velan
Founded in Montreal in 1950, Velan Inc. (www.velan.com) is one of the world’s leading manufacturers of industrial valves, with sales of US $371.6 million in its last reported fiscal year. The Company employs over 1,775 people and has manufacturing plants in 9 countries. Velan Inc. is a public company with its shares listed on the Toronto Stock Exchange under the symbol VLN.
Safe harbour statement
This news release may include forward-looking statements, which generally contain words like “should”, “believe”, “anticipate”, “plan”, “may”, “will”, “expect”, “intend”, “continue” or “estimate” or the negatives of these terms or variations of them or similar expressions, all of which are subject to risks and uncertainties, which are disclosed in the Company’s filings with the appropriate securities commissions. While these statements are based on management’s assumptions regarding historical trends, current conditions and expected future developments, as well as other factors that it believes are reasonable and appropriate in the circumstances, no forward-looking statement can be guaranteed and actual future results may differ materially from those expressed herein. The Company disclaims any intention or obligation to update or revise any forward-looking statements contained herein whether as a result of new information, future events or otherwise, except as required by the applicable securities laws. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
For further information please contact:
Yves Leduc, Chief Executive Officer
or
Réjean Ostiguy, Chief Financial Officer
Tel: (514) 748-7743
Fax: (514) 748-8635
Web: www.velan.com
