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Velan Reports Two New Overseas Joint Ventures
June 21 ,
2007
Montreal, QC, Canada (March 22, 2006) - Velan Inc. reports the signing of two foreign joint venture arrangements involving its overseas operations.
The first arrangement is a purchase agreement with an investment of approximately $6.5 million for a 75% interest in a European manufacturer of valves for nuclear and process applications. Current management will continue to hold the remaining 25%. The purchase agreement calls for a closing on approximately July 31, 2007, subject to due diligence procedures. This acquisition will further strengthen Velan’s leadership position in the nuclear valve industry.
The second arrangement is a letter of intent for an investment by our 50% owned Italian joint venture Velan Srl of approximately $1.1 million for a 67% interest in a greenfield manufacturing plant located in China. The joint venture’s partner is a local valve manufacturer. The plant will produce primarily API 6D pipeline valves and components, and is expected to be operational in the first half of calendar 2008.
Except for historical information provided herein, this press release may contain information and statements of a forward-looking nature concerning the future performance of the Company. These statements are based on suppositions and uncertainties as well as on management's best possible evaluation of future events. Both investments require certain legal formalities to be completed and neither investment is expected to have a material impact on Velan Inc.’s fiscal 2008 financial results.
Last Updated:
July 5, 2007 2:18 PM
EST
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