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TORONTO, April 09, 2020 (GLOBE NEWSWIRE) — STORAGEVAULT CANADA INC. (“StorageVault”) (SVI-TSX-V) is pleased to announce the acquisition of one store and an agreement to purchase two other stores in Manitoba for $11,545,000 in two separate transactions. StorageVault has completed a $3,700,000 acquisition of a store in Brandon, Manitoba and has entered into an asset purchase agreement with Access Self Storage Inc. (“Access”) to purchase two stores in Winnipeg, Manitoba (the “Winnipeg Stores Transaction”) for an aggregate purchase price of $7,845,000, subject to customary adjustments. Iqbal Khan, Chief Financial Officer, stated “we are pleased to add these 3 strategic stores to StorageVault’s portfolio in Manitoba bringing our count to 12 in the province and 202 owned and operated across Canada.”
The Brandon Store Acquisition
StorageVault has completed the acquisition of all of the storage assets, property and business used in one store located in Brandon, Manitoba for an aggregate purchase price of $3,700,000. The purchase price for the Brandon store acquisition was paid with mortgage financing and funds on hand, and the acquisition is an arm’s length transaction.
The Winnipeg Stores Transaction
The purchase price for the Winnipeg Stores Transaction is $7,845,000, subject to adjustments, and is payable by the issuance of $3,845,000 of common shares of StorageVault at a price equal to the greater of $3.10 per common share and the volume weighted average common share price during the 30 business day period ending two days prior to closing, with the remainder of the purchase price being paid with mortgage financing and funds on hand.
The Winnipeg Stores Transaction is subject to the acceptance of the TSX Venture Exchange (“TSXV”) and is conditional on customary closing conditions. Assuming all conditions in the purchase agreement are met or waived, it is anticipated that the closing of the Winnipeg Stores Transaction will occur on or around April 15, 2020. The independent Acquisition Committee of StorageVault has approved the Winnipeg Stores Transaction.
Exemption from MI 61-101 and TSXV Policy 5.9
As Access is a non-arm’s length party to StorageVault, the Winnipeg Stores Transaction is considered to be a “related party transaction” as defined in Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”) and TSXV Policy 5.9. StorageVault is relying on exemptions from the formal valuation and minority approval requirements of MI 61-101 and TSXV Policy 5.9, in respect of the Winnipeg Stores Transaction, pursuant to Section 5.5(b) (Issuer Not Listed on Specified Markets) and Section 5.7(a) (Fair Market Value Not More Than 25% of Market Capitalization) of MI 61-101, respectively.
There can be no assurance that the Winnipeg Stores Transaction will be completed as proposed or at all. The TSXV has in no way passed upon the merits of the Winnipeg Stores Transaction and has neither approved nor disapproved the contents of this news release. No new insiders will be created, nor will any change of control occur, as a result of the Winnipeg Stores Transaction.
About StorageVault Canada Inc.
StorageVault owns and operates 202 storage locations in the provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, and Nova Scotia. StorageVault owns 152 of these locations plus over 4,600 portable storage units representing over 8.2 million rentable square feet.
For further information, contact Mr. Steven Scott or Mr. Iqbal Khan: