StorageVault Canada Inc.
TSX VENTURE : SVI

October 14, 2008 07:30 ET

StorageVault Canada Inc. Announces Option to Purchase a Winnipeg, Manitoba Self-Storage Business

REGINA, SASKATCHEWAN--(Marketwire - Oct. 14, 2008) - StorageVault Canada Inc. (TSX VENTURE:SVI) ("StorageVault") is pleased to announce that it has entered into an Option to Purchase Agreement (the "Option Purchase Agreement ") to acquire from an arm's length vendor a self-storage facility located in Winnipeg, Manitoba. The right to exercise the option to purchase begins on January 1, 2009 and continues until January 15, 2009 (the "Option Term"). The aggregate purchase price is $7.15 million (subject to customary adjustments). In addition to the purchase price, the Vendor is entitled to receive an additional $150,000 earn out payment in the event the self-storage business achieves a pre-determined level of operating revenue. The Option Purchase 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, and (iii) approval by the board of directors of StorageVault to be given or withheld in its sole discretion. The Option Purchase Agreement is also subject to approval by the TSX Venture Exchange (the "TSX Venture") in accordance with the applicable policies of the TSX Venture.

If the option is exercised, the purchase price payment terms for the acquisition will be a combination of cash, bank debt financing, vendor take back of $500,000 shares of StorageVault to be issued at $0.23 per share, and the payment of a refundable deposit of $25,000 made to the Vendor upon execution of the Option Purchase Agreement. StorageVault intends to finance the acquisition with secured bank debt and the proceeds from a private placement as disclosed in its press release dated August 25, 2008.

There can be no assurance that the conditions under the Option Purchase Agreement will be satisfied, that TSX Venture approval will be granted, or that the acquisition will be successfully completed. If all conditions under the Option Purchase Agreement are satisfied, the acquisition is scheduled to close on January 30, 2009 (however under the terms of the Option Purchase Agreement the closing date may be extended by StorageVault for up to 60 days if necessary.).

StorageVault currently operates and owns one self-storage property located in Regina, Saskatchewan. 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 portable storage facilities in Canada. The common shares of StorageVault are listed on the TSX Venture under the symbol SVI.

Forward-Looking Information

This press release contains forward-looking information. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of StorageVault to be materially different from those expressed or implied by such forward-looking information. Such risks and other factors may include, but are not limited to: the early stage development of StorageVault; capital markets conditions; general business and economic uncertainties; competition; delay or failure to receive board or regulatory approvals; changes in legislation, including environmental legislation, affecting StorageVault; timing and availability of external financing on acceptable terms; conclusions of economic evaluations; and lack of qualified, skilled labor or loss of key individuals. Although StorageVault has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. The factors identified above are not intended to represent a complete list of the factors that could affect StorageVault. Additional factors are noted under "Risk Factors" in StorageVault's Filing Statement dated April 21, 2008 copies of which may be obtained on the SEDAR website at www.sedar.com.

The forward-looking information in this press release should not be relied upon as representing StorageVault's views as of any date subsequent to the date of this press release. Such forward-looking information is based on a number of assumptions which may prove to be incorrect, including, but not limited to: the ability of StorageVault to obtain necessary financing, satisfy conditions under the acquisition agreements, or satisfy any requirements of the TSX Venture with respect to the acquisitions and any related private placement; the level of activity in the self-storage business and the economy generally; consumer interest in StorageVault's services and products; competition; and anticipated and unanticipated costs. StorageVault does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • StorageVault Canada Inc.
    Alan Simpson
    President, CEO and Director
    (306) 536-3771