Velan Inc. (VLN) Shareholder Sells 72.1% Stake for C$203.9 Million
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Globenewswire
- Transaction Overview: Velan Holding has agreed to sell 15,566,567 multiple voting shares and one subordinate voting share at C$13.10 per share, totaling C$203.9 million, reflecting strong market confidence in Velan.
- Structural Adjustments: In a pre-closing reorganization, Velan Holding will convert 2,290,075 multiple voting shares into subordinate voting shares, ensuring Birch Hill will hold approximately 72.1% of the company's shares and 91.9% of voting rights post-transaction, enhancing its control.
- Strategic Partnership Outlook: Birch Hill intends to maintain Velan's presence in Quebec while providing capital support, indicating a strong commitment to Velan's long-term growth in Canada and internationally.
- Fees and Shareholder Agreement: Velan estimates transaction-related fees at approximately C$12 million and has entered into an Investor Rights Agreement with Birch Hill, allowing it to nominate up to four directors, further solidifying its influence in corporate governance.
Analyst Views on VLN
Wall Street analysts forecast VLN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for VLN is 3.33 USD with a low forecast of 3.00 USD and a high forecast of 4.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
3 Buy
0 Hold
0 Sell
Strong Buy
Current: 2.340
Low
3.00
Averages
3.33
High
4.00
Current: 2.340
Low
3.00
Averages
3.33
High
4.00
About VLN
Valens Semiconductor Ltd is an Israel-based company which is active in semiconductor industry. The Company is mainly engaged in providing digital connectivity solutions for the audio-video and automotive markets. Its Emmy HDBaseT technology chipsets integrated into the HDBaseT-enabled products in the professional audio-video markets. Its HDBaseT solutions for the audio-video market, which delivers plug-and-play convergence and distribution of different interfaces. Its HDBaseT enables the delivery of ultra-high-definition digital video and audio, Ethernet, control signals, universal serial bus (USB) and power through a single cable.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
