StorageVault Canada Inc.
TSX VENTURE : SVI

January 06, 2011 08:00 ET

StorageVault Canada Inc. Announces the Acquisition of an RV Storage Business in Saskatoon, Saskatchewan

REGINA, SASKATCHEWAN--(Marketwire - Jan. 6, 2011) - STORAGEVAULT CANADA INC. ("StorageVault") (TSX VENTURE:SVI) is pleased to announce that it has entered into an Acquisition Agreement of Purchase and Sale (the "Acquisition Agreement") to acquire from an arm's length vendor a recreational vehicle storage facility located in Saskatoon, Saskatchewan known as RV Storage of Saskatoon. The aggregate purchase price is $1.625 million (subject to customary adjustments). The Acquisition Agreement is subject to a number of conditions, including but not limited to: (i) the completion of due diligence and environmental investigations with respect to the property that must be satisfactory to StorageVault in its sole discretion, (ii) financing, (iii) approval by the board of directors of StorageVault to be given or withheld in its sole discretion; (iv) if applicable, approval of the shareholders of StorageVault; and (v) subdivision of the lands pertaining to the facility.

There can be no assurance that the conditions under the Acquisition Agreement will be satisfied, or that the acquisition will be successfully completed. If all conditions under the Acquisition Agreement are satisfied, the acquisition is scheduled to close on or before March 15, 2011.

The purchase price payment terms for the acquisition will be a combination of a $150,000 initial refundable deposit, a second $150,000 deposit upon removal of due diligence closing conditions, and a final cash payment of $1,325,000 at closing. StorageVault intends to finance the equity portion of the acquisition from the proceeds of a previously completed preferred share offering.

About RV Storage of Saskatoon

RV Storage of Saskatoon has capacity for the storage of approximately 700 vehicle units at the facility comprising approximately 180,000 square feet of rentable storage area on approximately 5.5 acres of land. The facility is located in Saskatoon, Saskatchewan. StorageVault intends to relocate and combine its PUPS portable storage business presently operating out of a leased location in Saskatoon with RV Storage of Saskatoon.

About StorageVault Canada Inc.

StorageVault currently owns and operates Trans Can Mini-Stor in Regina, Kenaston Self Storage in Winnipeg, B&B Self Storage in Cambridge, Parksville Mini Storage in the Regional District of Nanaimo and Canadian PUPS in Saskatoon. Both Trans Can Mini-Stor and Kenaston Self Storage are fixed unit storage facilities operating in conjunction with high margin Canadian PUPS portable storage franchises at each location. StorageVault currently operates Canadian PUPS in Saskatoon as a stand-alone portable storage franchise. StorageVault also manages six self-storage facilities in southern Ontario and 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. StorageVault intends to launch its PUPS portable storage business at both B&B Self Storage and Parksville Mini Storage in the spring of 2011.

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.

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
    3603 Selinger Crescent
    Regina, Saskatchewan S4V 2H7
    (306) 536-3771