StorageVault Canada Inc.

May 13, 2009 18:47 ET

StorageVault Announces Completion of Sale Convertible Unsecured Debentures

REGINA, SASKATCHEWAN--(Marketwire - May 13, 2009) - Further to a press release dated April 20, 2009, StorageVault Canada Inc. ("StorageVault") (TSX VENTURE:SVI) is pleased to announce the completion of the non-brokered private placement of $320,000 of convertible unsecured subordinated debentures (the "Debentures"). The Debentures have a five-year term and bear an interest rate of 9.5% payable quarterly in arrears. The Debentures will be convertible at the holder's option into common shares of StorageVault ("Common Shares") at any time prior to maturity or redemption of the Debentures at a conversion price of $0.32 per share. Holders converting their Debentures will receive accrued and unpaid interest thereon to the date of conversion. The Debentures will be redeemable at the option of StorageVault at any time after the second anniversary of the issuance of the Debentures upon 14 days prior written notice during which period the Debenture holder shall have the option to convert the Debenture into Common Shares. The Debentures are subject to a four-month hold period (until September 14, 2009). Proceeds of this financing will be used to establish a PUPS portable storage operation in the City of Saskatoon and for general working capital. The PUPS business will be operated from a leased location in Saskatoon until such time as an appropriate fixed unit storage facility is acquired, at which time both operations will then be merged.

The completion of the private placement is subject to final TSX Venture Exchange approval. Three directors of StorageVault participated in the private placement purchasing a total of $210,000 of Debentures and StorageVault has determined that there are exemptions available from the various requirements of TSX Venture Policy 5.9 and Multilateral Instrument 61-101 for the issuance of these Debentures, (Formal Valuation -Issuer Not Listed on Specified Markets; Minority Approval -Fair Market Value Not More Than 25% of Market Capitalization). No new insiders were created, nor has any change of control occurred, as a result of this private placement.

Further to disclosure requirements of applicable securities laws, StorageVault reports that Alan Simpson, President, CEO and a director of StorageVault, purchased $125,000 of the Debentures. Upon completion of the private placement, Mr. Simpson will own or control 3,287,810 Common Shares or approximately 9.8% of the total issued and outstanding Common Shares of StorageVault, options to acquire 1,170,000 Common Shares ("Options") at a price ranging from $0.20 per share to $0.23 per share and Debentures convertible into 390,625 Common Shares. Assuming exercise of such Options and assuming conversion of the Debentures, Mr. Simpson would own or control 4,848,435 Common Shares or approximately 13.8% of the total issued and outstanding Common Shares of StorageVault. The purchase of the Debentures by Mr. Simpson was made for investment purposes. Mr. Simpson may increase or decrease his investment in StorageVault depending on market conditions or any other relevant factors.

StorageVault Canada Inc.

StorageVault currently owns and operates Trans Can Mini-Stor in Regina and Kenaston Self Storage in Winnipeg. Both facilities are fixed unit storage facilities operating in conjunction with high margin Canadian PUPS portable storage franchises at each location. The Common Shares of StorageVault are listed on the TSX Venture Exchange under the symbol SVI.

Forward-Looking Information: This news release may contain certain forward-looking information. All statements included herein, other than statements of historical fact, is forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of 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 StorageVault does not undertake to update any forward-looking information except in accordance with applicable securities laws.

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.

Contact Information

  • StorageVault Canada Inc.
    Mr. Alan Simpson
    (306) 536-3771
    StorageVault Canada Inc.
    3603 Selinger Crescent
    Regina, Saskatchewan S4V 2H7