StorageVault Canada, Inc. (“StorageVault”) (TSX-V:SVI) is pleased to announce the following: (1) the acquisition of one store in the Greater Montreal Area; and (2) it is in negotiations to finalize a Purchase Agreement with Access Self Storage Inc. (“Access”), a major shareholder of StorageVault, to purchase six stores for $34.2 million that are located in Toronto, Ontario, and in multiple cities in Quebec and Nova Scotia.
Acquisition of Greater Montreal Area store
Further to its May 17, 2017 news release, StorageVault has completed the $8,000,000 acquisition of all of the storage assets, property and business used in the operation and business of one store in the Greater Montreal Area (the “Montreal Acquisition”). The Montreal Acquisition is an arm’s length transaction. The purchase price for the Montreal Acquisition in the amount of $8,000,000, subject to adjustments, was paid with funds on hand.
Negotiations to purchase six stores for $34.2 million from Access Self Storage, Inc.
StorageVault is in negotiations with Access Self Storage Inc., a major shareholder of StorageVault, and one of its subsidiaries (collectively “Access”) to finalize a purchase agreement with Access to purchase six stores for $34.2 million that are located in Toronto, Ontario, and in multiple cities in Quebec and Nova Scotia (the “Access Negotiations”). The purchase price for the Access acquisition will be payable, subject to TSX Venture Exchange acceptance, by the issuance of a minimum of 714,286 ($2,000,000) common shares of StorageVault to a maximum of 2,678,571 ($7,500,000) common shares of StorageVault at a deemed price of $2.80 per common share, with the remainder of the purchase price being paid with funds on hand and first mortgage financing. The transaction is expected to close on or around August 15, 2017.
Upon entering a purchase agreement, StorageVault will issue a further news release disclosing further particulars of the transaction. Any transaction resulting from the Access Negotiations would be a related party transaction and would be subject to applicable TSX Venture Exchange rules and Multilateral Instrument 61-101. There can be no assurance that any of these negotiations will result in definitive purchase agreements or a completed transaction.
About StorageVault Canada, Inc.
StorageVault owns and operates storage locations in the provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, and Nova Scotia.