StorageVault Canada, Inc. is pleased to announce the following: (1) it has waived the due diligence conditions and all other initial conditions on the Sentinel Storage $396.6 million portfolio purchase; (2) it will not move forward with the $15 million Montreal acquisition announced on March 10, 2017; and (3) it has entered into a purchase agreement to acquire three stores in Kamloops for $5,825,000.
Waive the Due Diligence Conditions on Sentinel Storage Portfolio
Further to the March 22, 2017 and May 17, 2017 news releases, StorageVault has waived all of its due diligence conditions and all other initial conditions for the Sentinel Storage portfolio acquisition. Based on the share purchase agreement, StorageVault has until August 4, 2017 to close the transaction, however, the parties are endeavouring to complete the closing prior to this date. On closing of the acquisition, the Sentinel portfolio will add scale to StorageVault’s current operations and will bring the total of number of StorageVault owned and managed stores across Canada to 141.
Will Not Move Forward With the $15 Million Montral Acquisition
Further to the March 10, 2017 news release, StorageVault was not willing to waive the due diligence conditions for the $15 million Montreal acquisition and will not be moving forward with this transaction.
Purchase Agreement to Acquire Three Stores in Kamloops
StorageVault has entered into an asset purchase agreement to purchase from arm’s length private vendors (the “Kamloops Vendors”) for an aggregate purchase price of $5,825,000, subject to customary adjustments, all of the storage assets, property, leaseholds and business used in the operation and businesses of three stores in Kamloops owned by the Kamloops Vendors (the “Kamloops Acquisition”). Assuming all conditions in the purchase agreement are met or waived, it is anticipated that the closing of the Kamloops Acquisition will occur on or before August 15, 2017.
Purchase Price and Payment
The purchase price for the Kamloops Acquisition is $5,825,000, subject to adjustments, and is payable by the issuance of $950,000 of Common Shares based on the closing price per Common Share on the last trading day prior to the closing date, with the remainder of the purchase price being paid with funds on hand and first mortgage financing.
Conditions Precedent to the Kamloops Acquisition
The obligations of StorageVault to complete the Kamloops Acquisition are subject to initial conditions including, but not limited to: satisfactory due diligence; satisfactory Environmental Site Assessment Reports; and formal StorageVault acquisition committee and board of directors approval. The obligations of both StorageVault and the Kamloops Vendors to complete the closing of the Kamloops Acquisition are subject to the satisfaction of other customary closing conditions, including acceptance of the TSX Venture Exchange (“TSXV”).
There can be no assurance that the Kamloops Acquisition will be completed as proposed or at all. The TSXV has in no way passed upon the merits of the Kamloops Acquisition and has neither approved nor disapproved the contents of this news release.
About StorageVault Canada, Inc.
StorageVault owns and operates storage locations in the provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec and Nova Scotia.