On January 14, 2025, Velan Inc. (TSX: VLN) announced the divestiture of its asbestos-related liabilities through the sale of its U.S. subsidiary, Velan Valve Corp., to an affiliate of Global Risk Capital. The $150 million USD (~$215.2 million CAD) transaction includes $143 million USD from Velan and $7 million USD from the buyer. The deal removes all asbestos-related liabilities from Velan’s balance sheet, ensuring financial stability. Ducera Partners LLC acted as the financial advisor, with legal advice from Davies Ward Phillips & Vineberg LLP and Latham & Watkins LLP. Jones Day advised Global Risk Capital.

The transaction is subject to financing and customary closing conditions. Upon completion, Velan expects to be debt-free and better positioned for future investments.