Velan Holding Sells Stake in Velan Inc. to Birch Hill Equity Partners

MONTREAL, Jan. 14, 2026 (GLOBE NEWSWIRE) -- Velan Inc. (TSX: VLN) (“Velan” or the “Company”) today announced that its controlling shareholder, Velan Holding Co. Ltd. (“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 the Company’s outstanding shares and 92.8% of its aggregate voting rights) to funds managed by Birch Hill Equity Partners Management Inc. (“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”). Birch Hill is a leading Canadian investment partner with a 30-year track record of deploying patient capital and operational expertise to scale market leaders for long-term global growth.

Velan Holding is set to divest its complete stake in Velan Inc., marking a significant shift in the ownership structure of the company. This decision comes as the company has reached an agreement with Birch Hill Equity Partners, a private equity firm based in Canada. The transaction is indicative of the strategic realignment priorities of Velan Holding and reflects the market dynamics.

The sale involves the transfer of all shares that Velan Holding currently holds in Velan Inc. to Birch Hill Equity Partners. This deal aims to streamline operations and position Velan Inc. for future growth by leveraging Birch Hill's resources and expertise. The specifics of the financial details surrounding the agreement have not been disclosed, but it is clear that both parties view this partnership as mutually beneficial.

This divestment by Velan Holding is not an isolated occurrence but aligns with broader market trends where companies reassess their portfolios to drive value and focus on core competencies. Birch Hill Equity Partners is known for investing in growth-oriented companies and could provide Velan Inc. with the necessary capital and mentorship to enhance its market position.

Moreover, such a change in ownership could lead to revitalization in Velan Inc., particularly in its operational strategies and product offerings. As markets evolve, the ability to adapt and innovate becomes crucial, and Birch Hill’s oversight may furnish Velan Inc. with the guidance needed to navigate these changes effectively.

Investors and stakeholders will be keenly watching this transition as it unfolds. With Birch Hill Equity Partners at the helm, Velan Inc. could potentially embark on new ventures and partnerships that align with the increasing consumer and industry demands. This could ultimately lead to significant growth prospects, instilling confidence in shareholders and possibly attracting new investment.

In conclusion, this sale not only reflects Velan Holding’s strategic shift but also points to the potential growth trajectory for Velan Inc. under Birch Hill Equity Partners. The implications of this transaction could reverberate throughout the industry, as both companies look towards future opportunities in a changing economic landscape.