StorageVault Canada Inc.
TSX VENTURE : SVI

September 09, 2010 08:00 ET

StorageVault Canada Inc. Announces the Acquisition of a Self-Storage Business in Parksville, British Columbia

REGINA, SASKATCHEWAN--(Marketwire - Sept. 9, 2010) - 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 self-storage facility located in Parksville, British Columbia. The aggregate purchase price is $2,800,000 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) satisfactory financing; (iii) approval by the board of directors of StorageVault to be given or withheld in its sole discretion; and (iv) if applicable, approval of the shareholders of StorageVault.

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 November 1, 2010.

The purchase price payment terms for the acquisition are a $100,000 initial refundable deposit, a second $180,000 deposit to be paid upon removal of due diligence conditions, a final cash payment of $1,120,000 at closing, and a $1,400,000 vendor-take-back mortgage with an annual interest rate of 5%. StorageVault intends to finance the cash portion of purchase price from the proceeds of its previously closed preferred share offering.

About Parksville Mini Storage

Parksville Mini Storage is a 135-unit facility with 27,000 square feet of rentable storage area and an additional 1.5 acres of undeveloped vacant land. The facility is located in Parksville, British Columbia and is part of the Regional District of Nanaimo (RDN), which includes the City of Nanaimo, City of Parksville, Town of Qualicum Beach, and District of Lantzville. StorageVault intends to develop and operate a PUPS portable storage business on the vacant land providing services to the RDN.

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 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 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.

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