StorageVault Canada Inc.

April 20, 2009 11:11 ET

StorageVault Announces the Issuance of Convertible Unsecured Debentures

REGINA, SASKATCHEWAN--(Marketwire - April 20, 2009) - StorageVault Canada Inc. (TSX VENTURE:SVI) ("StorageVault") is pleased to announce that it intends to raise a maximum of $500,000 by way of issuance of convertible unsecured subordinated debentures (the "Debentures"). The issue price is $5000 per Debenture with a minimum subscription per subscriber of $10,000. The Debentures will 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 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. The Debentures will have priority over all Preferred and Common Shares in the event of liquidation, dissolution or winding-up of StorageVault or its assets. The Debentures will be subordinate to all senior bank debt of StorageVault. It is not anticipated that any new insiders will be created, nor that any change of control will occur, as a result of this Debenture financing. Completion of the financing is subject to regulatory approval.

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.

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.

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.
    Alan Simpson
    CEO and Director
    (306) 536-3771