StorageVault Canada Inc. Announces Normal Course Issuer Bid
June 07, 2012
STORAGEVAULT CANADA INC. (“StorageVault”) (SVI-TSX-V) announced today that it has received regulatory approval from the TSX Venture Exchange (the “TSX Venture”) to make a Normal Course Issuer Bid (“NCIB”) to purchase for cancellation, during the 12-month period commencing June 12, 2012, up to 1,673,561 of its common shares, representing 5% of the common shares outstanding as at June 12, 2012. The program will end on June 11, 2013 unless the maximum amount of common shares is purchased before then or StorageVault provides earlier notice of termination.
The purchase and payment for the common shares will be made by StorageVault through the facilities of the TSX Venture. MGI Securities Inc. has been selected as StorageVault’s agent for the NCIB. The price paid for the common shares will be, subject to NCIB pricing rules contained in securities laws, the prevailing market price of such common shares on the TSX Venture at the time of such purchase. StorageVault intends to fund the purchases out of available cash.
StorageVault believes that the market price of its common shares may not reflect their underlying value and the Board of Directors has authorized this initiative because, in the Board’s opinion, the proposed purchase of common shares pursuant to the NCIB constitutes an appropriate use of StorageVault’s funds, and the repurchase of its common shares is one way of creating shareholder value.
To the knowledge of StorageVault, no director, senior officer or other insider of the StorageVault currently intends to sell any common shares under the NCIB. However, sales by such persons through the facilities of the TSX Venture may occur if the personal circumstance of any such person change or any such person makes a decision unrelated to these NCIB purchases. The benefits to any such person whose common shares are purchased would be the same as the benefits available to all other holders whose common shares are purchased.
About StorageVault Canada Inc.
StorageVault currently owns and operates Trans Can Mini-Stor in Regina, Kenaston Self Storage in Winnipeg, B&B Mini Storage in Cambridge, Space Place Self Storage in Calgary and Parksville Mini Storage in the Regional District of Nanaimo. With the exception of Calgary, each of these locations operates in conjunction with a high margin Canadian PUPS portable storage franchise. StorageVault also owns and operates a Canadian PUPS facility in Saskatoon as a stand-alone portable storage franchise. Additionally, StorageVault manages five self-storage facilities in southern Ontario in conjunction with two Canadian PUPS portable storage franchises in Ottawa and Peterborough. StorageVault 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 more information about StorageVault Canada visit www.storagevaultcanada.com.
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. In particular, this news release contains forward-looking information about potential purchases of StorageVault’s common shares through the NCIB. 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. In providing such forward-looking information, StorageVault has made assumptions about the market price of StorageVault’s common shares and StorageVault’s continued operations and financial performance. A description of other 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.