StorageVault Completes the Acquisition of Greater Montreal Area Store; In Negotiations to Purchase Six Stores for $34.2 MillionJune 26, 2017
TORONTO, June 26, 2017 (GLOBE NEWSWIRE) — STORAGEVAULT CANADA INC. (“StorageVault”) (TSX-V:SVI) is pleased to announce the following: (1) the acquisition of one store in the Greater Montreal Area; and (2) it is in negotiations to finalize a Purchase Agreement with Access Self Storage Inc. (“Access”), a major shareholder of StorageVault, to purchase six stores for $34.2 million that are located in Toronto, Ontario, and in multiple cities in Quebec and Nova Scotia.
ACQUISITION OF GREATER MONTREAL AREA STORE
Further to its May 17, 2017 news release, StorageVault has completed the $8,000,000 acquisition of all of the storage assets, property and business used in the operation and business of one store in the Greater Montreal Area (the “Montreal Acquisition”). The Montreal Acquisition is an arm’s length transaction.
The purchase price for the Montreal Acquisition in the amount of $8,000,000, subject to adjustments, was paid with funds on hand.
NEGOTIATIONS TO FINALIZE PURCHASE AGREEMENT TO PURCHASE SIX STORES FOR $34.2 MILLION FROM ACCESS SELF STORAGE INC.
StorageVault is in negotiations with Access Self Storage Inc., a major shareholder of StorageVault, and one of its subsidiaries (collectively “Access”) to finalize a purchase agreement with Access to purchase six stores for $34.2 million that are located in Toronto, Ontario, and in multiple cities in Quebec and Nova Scotia (the “Access Negotiations”). The purchase price for the Access acquisition will be payable, subject to TSX Venture Exchange acceptance, by the issuance of a minimum of 714,286 ($2,000,000) common shares of StorageVault to a maximum of 2,678,571 ($7,500,000) common shares of StorageVault at a deemed price of $2.80 per common share, with the remainder of the purchase price being paid with funds on hand and first mortgage financing. The transaction is expected to close on or around August 15, 2017.
Upon entering a purchase agreement, StorageVault will issue a further news release disclosing further particulars of the transaction. Any transaction resulting from the Access Negotiations would be a related party transaction and would be subject to applicable TSX Venture Exchange rules and Multilateral Instrument 61-101. There can be no assurance that any of these negotiations will result in definitive purchase agreements or a completed transaction.
ABOUT STORAGEVAULT CANADA INC.
StorageVault owns and operates storage locations in the provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, and Nova Scotia.
For further information, or to obtain a copy of the Early Warning Report of Access, contact Mr. Steven Scott or Mr. Iqbal Khan:
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Information: This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein are forward-looking information. In particular, this news release contains forward-looking information in relation to: any transaction that results from the Access Negotiations (an “Access Transaction”), including the potential aggregate size and location of the assets included in an Access Transaction; the potential issuance of common shares of the Corporation as consideration for an Access Transaction; and the timing for completion of an Access Transaction. This forward-looking information reflects StorageVault’s current beliefs and is based on information currently available to StorageVault and on assumptions StorageVault believes are reasonable. These assumptions include, but are not limited to: the completion of satisfactory due diligence by StorageVault in relation to an Access Transaction; the satisfactory negotiation and execution of formal purchase agreements in relation to an Access Transaction; the satisfactory fulfilment of all of the conditions precedent to any Access Transaction; the receipt of all required approvals for any Access Transaction, including TSX Venture Exchange acceptance and StorageVault board of directors approval; the availability of satisfactory financing for any Access Transaction; the issuance of any common shares as part of the consideration in relation to any Access Transaction; and the ability of StorageVault to rely on exemptions from the formal valuation and minority approval requirements of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions and TSXV Policy 5.9 in respect of any Access Transaction. Forward looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of StorageVault to be materially different from those expressed or implied by such forward-looking information. Such risks and other factors may include, but are not limited to: general business, economic, competitive, political and social uncertainties; general capital market conditions and market prices for securities; delay or failure to receive board or regulatory approvals; the actual results of future operations; competition; changes in legislation, including environmental legislation, affecting StorageVault; the timing and availability of external financing on acceptable terms; conclusions of economic evaluations and appraisals; and lack of qualified, skilled labour or loss of key individuals. A description of additional assumptions used to develop such forward-looking information and a description of additional risk factors that may cause actual results to differ materially from forward-looking information can be found in StorageVault’s disclosure documents on the SEDAR website at www.sedar.com. Although StorageVault has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Readers are cautioned that the foregoing list of factors is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking information as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Forward-looking information contained in this news release is expressly qualified by this cautionary statement. The forward-looking information contained in this news release represents the expectations of StorageVault as of the date of this news release and, accordingly, is subject to change after such date. However, StorageVault expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities law.