StorageVault Canada Inc.
TSX VENTURE : SVI

January 18, 2011 08:00 ET

StorageVault Canada Inc. Enters Agreement for the Sale of Land in Cambridge, Ontario

REGINA, SASKATCHEWAN--(Marketwire - Jan. 18, 2011) - STORAGEVAULT CANADA INC. ("StorageVault") (TSX VENTURE:SVI) is pleased to announce that it has entered into an Agreement of Purchase and Sale (the "Sale Agreement") to sell to PepsiCo Foods Canada ("PepsiCo"), a business unit of PepsiCo Canada ULC, approximately 2.16 acres of land located in Cambridge, Ontario (the "Sale Property") currently being used as storage for recreational vehicles as part of StorageVault's B&B Mini Storage facility. The aggregate sale price is $760,000 (subject to customary adjustments). The aggregate sale price is comprised of $350,000 cash and the conveyance by PepsiCo to StorageVault of a property at closing (the "Exchanged Property") consisting of approximately 1.45 acres of land situated adjacent to B&B Mini Storage. In addition, StorageVault shall lease back the Sale Property for a two year term rent free. The Sale 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 Exchanged Property that must be satisfactory to StorageVault in its sole discretion; (ii) the completion of due diligence and environmental investigations with respect to the Sale Property that must be satisfactory to PepsiCo in its sole discretion; and (iii) legal severance of the Sale Property from StorageVault's B&B Mini Storage lands in order to convey the Sale Property to PepsiCo.

Pursuant to the Sale Agreement, the terms of payment to StorageVault by PepsiCo for the Sale Property will be: (i) a $50,000 first refundable deposit upon acceptance of the Sale Agreement; (ii) a second $75,000 deposit upon removal of due diligence conditions; (iii) a final cash payment of $225,000 at closing; and (iv) the conveyance of the Exchanged Property at closing.

There can be no assurance that the conditions under the Sale Agreement will be satisfied, or that the sale will be successfully completed. If all conditions under the Sale Agreement are satisfied, the sale is scheduled to close on March 2, 2011. The closing date may be extended by either party for an aggregate extension not to exceed two months to allow for fulfillment of the severance condition.

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