Velan Inc.

Velan Inc.

October 14, 2008 17:40 ET

Velan Inc.: 2008 Normal Course Issuer Bid

MONTREAL, QUEBEC--(Marketwire - Oct. 14, 2008) - Velan Inc. (the "Corporation") (TSX:VLN) announced today that it intends, subject to the approval of the Toronto Stock Exchange, to proceed with a normal course issuer bid. Under the bid, the Corporation may purchase up to 337,620 Subordinate Voting Shares of the Corporation, representing 5% of the issued shares of such class as at October 10, 2008. The average daily trading volume for the 6-month period preceding September 30, 2008 is 9,366 shares. In accordance with TSX requirements a maximum daily repurchase of 25% of this average may be made, representing 2,341 Shares. The shares will be purchased on behalf of the Corporation by a registered broker through the facilities of the Toronto Stock Exchange. The price paid for the shares will be the market price at the time of the acquisition, and the number of shares purchased and the timing of any such purchases will be determined by the Corporation. All shares purchased by the Corporation will be cancelled. The Corporation currently has 6,752,401 Subordinate Voting Shares. During the past 12 months, no shares were purchased by the Corporation.

The directors of the Corporation have concluded that purchases of up to 337,620 of the issued and outstanding Subordinate Voting Shares are an appropriate and desirable use of the Corporation's available funds and, therefore, would be in the best interest of the Corporation. As a result of such purchases, the number of issued shares will be decreased and, consequently, the proportionate share interest of all remaining shareholders will be increased on a pro rata basis.

Tom Velan, President


Contact Information

  • VELAN Inc.
    Tom Velan
    514-748-8635 (FAX)
    VELAN Inc.
    John D. Ball
    Chief Financial Officer
    514-748-8635 (FAX)