StorageVault Closes Acquisition of $48 Million of Storage Assets in Quebec and Ontario
October 03, 2016
CALGARY, ALBERTA--(Marketwired - Oct. 3, 2016) - STORAGEVAULT CANADA INC. ("StorageVault") (TSX VENTURE:SVI) is pleased to announce that, further to its August 2, 2016 and September 19, 2016 news releases, it has completed the $47,985,000 acquisition of all of the storage assets, property and business used in three Montreal, Quebec area self storage stores owned by Depotium Self Stockage Inc. ("Depotium"), one Greater Toronto Area self storage store owned by Access Self Storage Inc. ("Access") and all of the portable storage assets and business of 1934255 Ontario Inc. ("1934255"), which consists of 110 portable storage containers (collectively, the "Acquisition"). The Acquisition is a non arm's-length transaction.
The purchase price for the Acquisition in the amount of $47,985,000, subject to adjustments, was paid by the issuance of 7,954,545 common shares of StorageVault ("Common Shares") at an aggregate deemed price of $7,000,000 with the remainder being paid with funds on hand and first mortgage financing. The Common Shares are subject to a hold period that expires on January 31, 2017. The assets located in Quebec provides StorageVault with a desirable initial footprint in Montreal, Canada's second largest city.
Exemption from MI 61-101 and TSXV Policy 5.9; and Early Warning
As Access is a non-arm's length party to StorageVault, the Acquisition is considered a "related party transaction" under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101") and TSX Venture Exchange ("TSXV") Policy 5.9. StorageVault is relying on exemptions from the formal valuation and minority approval requirements of MI 61-101 and TSXV Policy 5.9, in respect of the Acquisition, pursuant to Section 5.5(b) (Issuer Not Listed on Specified Markets) and Section 5.7(a) (Fair Market Value Not More Than 25% of Market Capitalization) of MI 61-101, respectively. No new insiders will be created, nor will any change of control occur, as a result of the Acquisition.
7,736,280 Common Shares at a deemed price of $0.88 per share, having an aggregate value of $6,807,946, were issued to Access in connection with the Acquisition, representing 3.07% of the issued and outstanding Common Shares of StorageVault. Prior to the closing of the Acquisition, Access held 55,351,291 Common Shares, representing 22.67% of the issued and outstanding Common Shares of StorageVault. Access now owns or controls 63,087,571 Common Shares or approximately 25.02% of the total issued and outstanding Common Shares of StorageVault. Access may increase or decrease its investment in StorageVault depending on market conditions or any other relevant factors. The head office address for both StorageVault and Access is 100 Canadian Road, Toronto, Ontario M1R 4Z5.
About StorageVault Canada Inc.
StorageVault owns and operates storage locations in the provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, and Nova Scotia.
For further information, or to obtain a copy of the Early Warning Report of Access, contact Mr. Steven Scott or Mr. Iqbal Khan.
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.
Mr. Steven Scott
Mr. Iqbal Khan