Velan Inc. (VLN.TO) announced that its controlling shareholder, Velan Holding, the sole holder of the company's multiple voting shares, has agreed to sell its 15,566,567 multiple voting shares and one subordinate voting share - representing approximately 72.1% of Velan Inc.'s outstanding shares and 92.8% of its aggregate voting rights - to funds managed by Birch Hill Equity Partners Management, at a price of C$13.10 per share, for aggregate gross proceeds of C$203.9 million to Velan and two other entities associated with shareholders of Velan Holding.
In connection with the transaction, Velan has also agreed to enter into an investor rights agreement with Birch Hill at closing, pursuant to which Birch Hill and its affiliates holding Velan shares will have the right to appoint up to four of seven nominees to the Board so long as they maintain ownership of more than 40% of the voting rights attached to the company's issued and outstanding shares.
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