StorageVault Announces the Signing of an Acquisition Agreement for a Self-storage Business in London, Ontario.
January 09, 2013
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 vendor a self-storage facility located in London, Ontario. The aggregate purchase price is $2,575,000 (subject to customary adjustments). The Acquisition 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 property that must be satisfactory to StorageVault in its sole discretion; (ii) satisfactory financing; (iii) approval by the board of directors of StorageVault to be given or withheld in its sole discretion; and (iv) if applicable, approval of the shareholders of StorageVault.
There can be no assurance that the conditions under the Acquisition Agreement will be satisfied, or that the acquisition will be successfully completed. If all conditions under the Acquisition Agreement are satisfied during the due diligence period, the acquisition is scheduled to close March 25, 2013, or such earlier or later date as is mutually agreeable.
The purchase price payment terms for the acquisition are a $25,000 initial refundable deposit, a second $25,000 deposit (refundable in certain circumstances) to be paid upon removal of due diligence conditions and a final cash payment of $2,525,000 at closing.
About the London Self-Storage Facility
The London self-storage facility has approximately 50,000 square feet of rentable self-storage space together with outdoor space for storage of vehicles. StorageVault intends to develop and operate a PUPS portable storage business in London in conjunction with the acquisition of the self-storage facility.
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 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 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 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.