Velan Inc. Announces Leadership Transition Plan

Ad blocking detected

Thank you for visiting CanadianInsider.com. We have detected you cannot see ads being served on our site due to blocking. Unfortunately, due to the high cost of data, we cannot serve the requested page without the accompanied ads.

If you have installed ad-blocking software, please disable it (sometimes a complete uninstall is necessary). Private browsing Firefox users should be able to disable tracking protection while visiting our website. Visit Mozilla support for more information. If you do not believe you have any ad-blocking software on your browser, you may want to try another browser, computer or internet service provider. Alternatively, you may consider the following if you want an ad-free experience.

Canadian Insider Ultra Club
$500/ year*
Daily Morning INK newsletter
+3 months archive
Canadian Market INK weekly newsletter
+3 months archive
30 publication downloads per month from the PDF store
Top 20 Gold, Top 30 Energy, Top 40 Stock downloads from the PDF store
All benefits of basic registration
No 3rd party display ads
JOIN THE CLUB

* Price is subject to applicable taxes.

Paid subscriptions and memberships are auto-renewing unless cancelled (easily done via the Account Settings Membership Status page after logging in). Once cancelled, a subscription or membership will terminate at the end of the current term.

Velan Inc. Announces Leadership Transition Plan

MONTREAL, QUEBEC--(Marketwired - July 12, 2016) - Tom Velan, Chairman of the Board and Chief Executive Officer ("CEO") of Velan Inc. (TSX:VLN) (the "Company"), announced his plan to retire from his CEO position, effective March 1st, 2017. On that date, Yves Leduc, who is currently the President of the Company, will become President and CEO. Tom Velan will continue to be the Chairman of the Board. Yves Leduc will become the first non-Velan family CEO in the history of the family-controlled valve company.

"Back in 2012, I advised the board that we should start thinking about a leadership transition plan," said Tom Velan. "The Board and I subsequently began working on a multi-facetted plan to prepare the Company for succession, including establishing a leadership and talent committee, revamping the executive incentive plan, and performing an executive search, which culminated in Yves Leduc being named President in January, 2015. When I retire as CEO in 2017, I will be 65 years old and will have worked for 44 years in the Company, the last 14 years as the leader. My work at Velan has been a very important part of my life and I will continue to be closely involved in the Company in the future, both at the Board level and in advising Yves and the executive team. Our family continues to own more than 70% of the shares and we have a deep commitment to the success of the Company."

Mr. Velan continued, "I have full confidence that Yves Leduc and the management team will provide the leadership and vision to build on our 66-year heritage and grow the Company into the future. In the short term, we face tough market challenges due to the downturn in energy markets but we have defined a path for growth and business improvement, and our goal is to be ready to benefit when the market recovers."

Yves Leduc said "Working alongside Tom and the whole Velan team has proven to be both dynamic and rewarding. I have deepened my knowledge of the valve industry, most notably during my trips with Tom to visit our suppliers, and plant locations around the world, as well as through my frequent interactions with our customers. Under Tom's direction, this Company has expanded its global presence and more than doubled in size and I will continue, of course, to benefit from his invaluable counsel. Today we have a strong balance sheet, a global footprint and supply chain, and a long-standing network of end-users and distributors spanning the globe. Above all, we have earned an unparalleled reputation for our products and technical knowhow in all of our markets. Over the course of my first year as President, our team has developed a strategic plan intending on fully leveraging those advantages to deliver ambitious goals. I am enthusiastic about the future of the Company."

Bill Sheffield, Lead Director and Chairman of the Corporate Governance and Human Resources Committee, stated "The Velans have built a great global business over the last 66 years. I am glad that Tom got us started on a leadership transition process early enough so that we could accomplish the succession plan in an orderly and professional way. It is a big change for this Company that has always had a Velan as leader to move to a non- Velan-family leader. Over the last year and a half, I have witnessed a very good working relationship between Tom and Yves with a lot of mutual respect and support and this bodes well for the future with Yves as CEO and Tom as Chairman of the Board."

About Velan

Founded in Montreal in 1950, Velan Inc. (www.velan.com) is one of the world's leading manufacturers of industrial valves, with sales of US$426.9 million in its last reported fiscal year. The Company has manufacturing plants in 10 countries. Velan Inc. is a public company with its shares listed on the Toronto Stock Exchange under the symbol VLN.

Safe harbour statement

This news release may include forward-looking statements, which generally contain words like "should", "believe", "anticipate", "plan", "may", "will", "expect", "intend", "continue" or "estimate" or the negatives of these terms or variations of them or similar expressions, all of which are subject to risks and uncertainties, which are disclosed in the Company's filings with the appropriate securities commissions. While these statements are based on management's assumptions regarding historical trends, current conditions and expected future developments, as well as other factors that it believes are reasonable and appropriate in the circumstances, no forward-looking statement can be guaranteed and actual future results may differ materially from those expressed herein. The Company disclaims any intention or obligation to update or revise any forward-looking statements contained herein whether as a result of new information, future events or otherwise, except as required by the applicable securities laws. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

Tom Velan
Chief Executive Officer
Yves Leduc
President

John D. Ball
Chief Financial Officer
(514) 748-7743
(514) 748-8635
www.velan.com

Comment On!

140
Upload limit is up to 1mb only
To post messages to your Socail Media account, you must first give authorization from the websites. Select the platform you wish to connect your account to CanadianInsider.com (via Easy Blurb).