StorageVault Announces Acquisition Agreement and Waives Due Diligence Conditions for the Acquisition of Property in Edmonton, Alberta
May 28, 2014
STORAGEVAULT CANADA INC. (“StorageVault”) (SVI-TSX-V) is pleased to announce that it has entered into an acquisition agreement of purchase and sale (the “Acquisition Agreement”), to acquire from an arm’s length third party a property located in Edmonton, Alberta (the “Acquisition”). The aggregate purchase price is $1,500,000 (subject to customary adjustments). StorageVault has also provided notice to the vendor of the satisfaction of the due diligence and environmental investigations conditions with respect to the property. The Acquisition is scheduled to close on May 15, 2014, or such earlier or later date as is mutually agreeable. The purchase price payment terms for the acquisition is: (i) a $50,000 initial refundable deposit; (ii) a second $50,000 deposit (refundable in certain circumstances) to be paid within 7 business days from the removal of the due diligence conditions; and (iii) a final payment of $1,400,000 to be paid at closing. The Proposed Transaction is subject to standard closing conditions including the representations and warranties of the vendor contained in the Acquisition Agreement being true and correct at closing and the delivery of standard closing documentation. There can be no assurance that the closing conditions contained in the Acquisition Agreement will be satisfied, or that the Acquisition will be successfully completed.
About the Property
The acquired property is approximately 3.0 acres in size and is located in the Maple Ridge Industrial Park in Edmonton, Alberta. Approximately 1.5 acres of the acquired property is developed as a compacted gravel compound, which includes an office dwelling and a 2300 sq. ft. steel framed building on a concrete pad. StorageVault intends to launch and operate a PUPS portable storage business from the location to serve the City of Edmonton and the surrounding area.
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, Space Place Self Storage in Calgary, Airport Road Self Storage in London and Canadian PUPS in Saskatoon. Trans Can Mini-Stor, Kenaston Self Storage, B&B Mini Storage, Parksville Mini Storage and Space Place Self Storage are fixed unit storage facilities operating in conjunction with Canadian PUPS portable storage franchises at each location. StorageVault operates Canadian PUPS Portable Storage in Saskatoon as a stand-alone portable storage franchise. StorageVault also manages five 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.
For further information, contact
Mr. Alan Simpson
3603 Selinger Crescent
Regina, Saskatchewan S4V 2H7
Tel: (306) 536-3771
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.
Forward-Looking Information: This news release contains 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. In particular, this news release contains forward-looking information regarding the Acquisition. There can be no assurance that such forward-looking information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such forward-looking information. This forward-looking information reflects StorageVault’s current beliefs and is based on information currently available to StorageVault and on assumptions StorageVault believes are reasonable. These assumptions include, but are not limited to, the continuing due diligence in respect of the Acquisition being satisfactory, receipt of all approvals required to complete the Acquisition and the delivery satisfactory closing documents required to complete the Acquisition. 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: general business, economic, competitive, political and social uncertainties; capital market conditions and market prices for securities and junior market securities; the actual results of StorageVault’s business operations; competition; changes in legislation, including environmental legislation, affecting the StorageVault; timing and availability of external financing on acceptable terms; and lack of qualified, skilled labour or loss of key individuals. A description of additional assumptions used to develop such forward-looking information and a description of additional 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. Although StorageVault has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information. StorageVault does not undertake to update any forward-looking information except in accordance with applicable securities laws.