StorageVault Canada Inc.
TSX VENTURE : SVI

June 01, 2009 17:32 ET

StorageVault Announces the Signing of a Proof of Concept Agreement With Conundrum Capital Corporation

REGINA, SASKATCHEWAN--(Marketwire - June 1, 2009) - STORAGEVAULT CANADA INC. ("StorageVault") (TSX VENTURE:SVI) -StorageVault is pleased to announce the signing of a Proof of Concept Agreement with Conundrum Capital Corporation ("Conundrum") and CSSL Sub LP, on behalf of a fund managed by Conundrum (the "Fund"). Subsequent to discussions that have occurred between StorageVault, Conundrum and the Fund (jointly referred to as the "Parties"), the Parties have agreed to proceed with a Canadian PUPS portable storage proof of concept trial at Conundrum's self storage facility in Kanata, Ontario. The trial is scheduled to conclude on December 31, 2009 unless mutually extended in writing.

Pursuant to the agreement, the Fund has agreed to fund the trial, pay for the portable storage containers to be used in the trial, and has agreed to pay a 5% management fee and a 3.5% franchise fee (on PUPS revenue only) to StorageVault. For the purpose of evaluating the success of the trial, the Parties developed a business plan that includes measurable benchmarks. Following the trial, should the benchmarks be obtained, the Parties will use their reasonable best efforts to enter into a funding/investment arrangement to permit the acquisition of self storage facilities in major Canadian centres and the rollout of the PUPS strategy at those facilities. If the funding/investment agreement is not completed, there are provisions for the purchase by StorageVault of the PUPS containers at a discounted purchase price as well as a one time lump sum payment to StorageVault of $60,000 or $100,000 depending on the success of the trial.

About 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. StorageVault intends to continue to grow its business through the acquisition of additional self-storage properties and organically as master franchisee through the development of Canadian PUPS portable storage facilities in Canada. The common shares of StorageVault are listed on the TSX Venture Exchange.

About Conundrum Capital Corporation

Conundrum is a private equity management firm focused on delivering innovative real estate investments that meet the needs of major pension plans, financial institutions and high net worth investors.

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 www.sedar.com. In addition, StorageVault has assumed that funding will be available from the Fund if the trial is successful and the funding/investment agreement is executed. 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
    or
    StorageVault Canada Inc.
    3603 Selinger Crescent
    Regina, Saskatchewan S4V 2H7