FINWIRES · TerminalLIVE
FINWIRES

Velan Closes the Sale of Its Controlling Shareholder's Interest to Birch Hill

By

Velan (VLN.TO), up 2.6% on last look, on Monday said it closed the sale by its controlling shareholder, Velan Holding, of its stake in the company to Birch Hill Equity Partners Management.

Velan Holding sold its interest to Birch Hill at $13.10 per share, totalling $203.9 million, a statement said. With the acquisition, Birch Hill has a 72.1% stake in Velan shares and a 92.8% voting interest.

The sale coincides with planned board and management changes at Velan. Former chief financial officer Rishi Sharma has been promoted to chief executive officer. Imran Gibbons, previously vice president, global financial planning and analysis, has been appointed chief financial officer.

Ivan Velan, Peter Velan, Rob Velan, and Tom Velan, have resigned from Velan's Board.

Patrick Duncan, a partner at Birch Hill, has been appointed board chair. Joshua Lundy, Jim Mannebach, and Shauna Gamble have been appointed to the board as Birch Hill nominees, with Gamble serving as an independent director.

Jim Mannebach will be retiring as chief executive officer and stepping down as board chair.

Velan also intends to close on a five-year, US$80-million revolving credit facility. Funds are expected to be used to retire other debt in North America and for general corporate purposes going forward.

Velan shares were last seen up $0.40 to $15.91 on the Toronto Stock Exchange.

Price: $15.91, Change: $+0.40, Percent Change: +2.58%

Related Articles

Treasury

US Treasury Closing Levels

3:00 Friday vs 3:00 Thursday2yr 99-26 vs 99-27; 4.085% vs 4.068%5yr 99-19 vs 99-22; 4.213% vs 4.188%10yr 99-03 vs 99-09+; 4.487% vs 4.461%30yr 100-12 vs 100-24+; 4.974% vs 4.949%2/10 39.965 bps vs 39.083 bps5/30 75.998 bps vs 75.966 bps

Treasury

Morguard Announces $250 Million Debenture Offer and Early Redemption of Series H Senior Unsecured Debentures

Morguard (MRC.TO) agreed to issue $250 million aggregate principal amount of series J senior unsecured debentures, it said after markets closed on Thursday.The debentures will bear interest at a rate of 4.307% per year and will mature on June 18, 2029.Morningstar DBRS assigned a provisional rating of "BBB (low)" with a Stable trend.The company also said that it will redeem all of its outstanding 9.5% Series H senior unsecured debentures due Sept. 26, 2026 on June 22, 2026.The net proceeds of the offering will be used towards the early redemption of the 2023 debentures and for general corporate purposes, it added."The redemption price will be paid in cash and is approximately $1,014.753 per $1,000 principal amount of 2023 Debentures, together with accrued and unpaid interest on the 2023 Debentures up to, but excluding, the Redemption Date," said the company.The company's shares were last seen up $1.00 at $122.00 on the Toronto Stock Exchange.Price: $122.00, Change: $+1.00, Percent Change: +0.83%

$MRC.TO
Treasury

Japan Gold Announces US$1 Million Convertible Debenture Financing; Shares up 5.8%

Japan Gold (JG.V) on Friday said it will raise US$1 million from a private placement of unsecured convertible debenture for gross proceeds of US$1 million to Equinox Partners Investment Management, a strategic investor and major shareholder of the company.The three-year debenture bears an interest rate of 10% per year, accruing daily but payable in cash only at the maturity date, on the occurrence of an event of default or upon an early redemption, stated the company.The company will have the right, at its option, to make an early redemption in cash of all or any part of the principal amount together with payment of any accrued but unpaid interest, said the company."In addition, the company will have the right, at its election, to satisfy its obligation to pay cash to the debenture holder through the delivery of common shares of the company in lieu of cash, at a price per share which equals the greater of: (i) the most recent market price of the shares on the TSX Venture Exchange on the date that the accrued interest becomes payable; (ii) $0.11; and (iii) a price per security or conversion price of debt securities in a future financing event," stated the company.The net proceeds will be used for general working capital purposes, said the company.Equinox holds a 29.32% stake in Japan Gold.The company's shares were last seen up C$0.005 to C$0.09 on the TSX Venture Exchange.

$JG.V