StorageVault Canada Inc.
TSX VENTURE : SVI

April 22, 2008 17:50 ET

StorageVault Files Filing Statement on SEDAR

REGINA, SASKATCHEWAN--(Marketwire - April 22, 2008) - STORAGEVAULT CANADA INC. ("StorageVault") (TSX VENTURE:SVI.P) - is pleased to announce that the TSX Venture Exchange (the "Exchange") has conditionally accepted the acquisition by StorageVault of T.C. Mini-Storage Ltd.'s ("T.C. Mini-Storage") assets (the "Assets"), and the business (the "Business") of owning and operating rental storage units in Regina, Saskatchewan, as StorageVault's Qualifying Transaction, as described in StorageVault's press releases dated April 3, 2008 and December 4, 2007. Final approval of the Qualifying Transaction by the Exchange is subject to StorageVault fulfilling all of the usual requirements of the Exchange for a Qualifying Transaction. In connection with the Qualifying Transaction, on April 22, 2008, StorageVault filed on SEDAR the filing statement (the "Filing Statement") of the StorageVault dated April 21, 2008, which contains full disclosure regarding the Qualifying Transaction and the Assets and Business. StorageVault expects to close the Qualifying Transaction on April 30, 2008.

Description of T.C. Mini Storage and the Business

T.C. Mini-Storage was incorporated under the laws of Saskatchewan on June 7, 2006. T.C. Mini-Storage is a private company with its head office located at 6050 Diefenbaker Drive, R.M. of Sherwood #159 and its registered office located at 810, 410 22nd St. E., Saskatoon, Saskatchewan S7K 5T6. T.C. Mini-Storage is wholly-owned by Nathalie Hagel and Bruce Hagel.

T.C. Mini-Storage's Business consists of owning and operating rental storage units near the eastern outskirts of Regina, Saskatchewan. The Assets of the Business consist of a property that is comprised of the land, buildings and facilities located at 6050 Diefenbaker Drive, Regina Saskatchewan, legally described as Lot 1, Block/Par J, Plan 96R36607, Surface Parcel Number 111636097 and Lot 2, Block/Par J, Plan 96R36607, Surface Parcel Number 111636109, being 562 feet wide by 650 feet deep, containing 8.34 acres more or less (the "Property"). The Property is a self-storage facility with 351 storage units totalling 41,600 square feet of leasable space. The Property consists of eight storage buildings constructed between 1996 and 1998 that sit in a fenced yard of 3.14 acres, with 2.48 acres of surplus land included at the rear. In addition, there is an adjacent 2.72 acres of land separately titled that is fenced and rented as outdoor storage for RV's, boats, automobiles, and trailers.

The buildings located on the Property are all single storey and constructed of wood and steel frame, with steel clad roof and walls. Most units are "drive-up" with some accessible by interior corridors. All units have steel roll-up or walk in doors. The entire facility is fenced and video monitored. Access to the facility is controlled by an electric gate that denies entry to customers whose rental account is in arrears. Also on site are two offices for sales and management purposes, and a suite in which an on-site caretaker can reside.

The Business has been operational since 1996 and has a current occupancy rate greater than 80%.

Terms of the Proposed Transaction

Pursuant to the Asset Purchase Agreement between StorageVault and T.C. Mini-Storage dated November 28, 2007, StorageVault will acquire the Assets relating to the Business, comprised of the Property, contracts, goodwill, customer lists, equipment and books and records relating to the operation of the Business, for a purchase price of $2,660,000, made up of $898,363 in cash, a $10,000 cash payment in respect of exercising an option to extend the closing for an additional 30 days from March 31, 2008, and an assumption of the existing mortgage on the Property of approximately $1,751,637. StorageVault has received conditional approval to assume the existing mortgage and has the necessary cash to fund the cash portion of the purchase price and extended closing fee.

StorageVault paid concurrently with the execution of the Asset Purchase Agreement a non-refundable deposit of $25,000 which will be applied to the payment of the purchase price on the closing date of the Qualifying Transaction. Upon completion of the Qualifying Transaction, StorageVault will carry on the Business and be engaged in the self-storage industry.

Management

The board of directors of StorageVault currently consists of Alan A. Simpson, Glenn E. Fradette, Dan Baldwin and Paul G. Smith. On completion of the Qualifying Transaction, each of the current directors will remain on the board of directors and Alan A. Simpson will continue to act as President and Chief Executive Officer and Glenn E. Fradette will continue to act as Chief Financial Officer.

Reader Advisory

Investors are cautioned that, except as disclosed in the Filing Statement prepared in connection with the Qualifying Transaction, any information released or received with respect to the Qualifying Transaction may not be accurate or complete and should not be relied upon. Trading in the securities of a capital pool company should be considered highly speculative.

Statements in this press release may contain forward-looking information including expectations of future production, operating costs, commodity prices, administrative costs, commodity price risk management activity, acquisitions and dispositions, capital spending, access to credit facilities, income taxes, regulatory changes, and other components of cash flow and earnings. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of StorageVault. These risks include, but are not limited to, the risks associated with the waste treatment industry. The reader is cautioned not to place undue reliance on this forward-looking information.

Completion of the transaction is subject to a number of conditions, including but not limited to, Exchange acceptance. There can be no assurance that the transaction will be completed as proposed or at all.

The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.

Contact Information

  • StorageVault Canada Inc.
    Alan Simpson
    President, CEO and director
    (306) 536-3771 or (306) 546-5999