StorageVault Completes Acquisition of 2 Ottawa Stores for $13.3 Million
October 22, 2018
STORAGEVAULT CANADA INC. (“StorageVault”) (SVI-TSX-V) is pleased to announce that, further to its October 17, 2018 news release, it has completed the acquisition of all of the storage assets, property and business used in two stores in Ottawa, Ontario (the “Acquisition”) from Access Self Storage Inc. (“Access”), for an aggregate purchase price of $13.3 million. The Acquisition is a non arm’s-length transaction.
The purchase price for the Acquisition in the amount of $13,250,000, subject to customary adjustments, was paid by the issuance of 1,481,481 common shares of StorageVault (“Payment Shares”) at a deemed aggregate price of $4,000,000 or $2.70 per common share, with the remainder being paid with funds on hand and first mortgage financing. The Payment Shares are subject to a hold period that expires on February 19, 2019. The acquisition of the self storage stores in Ottawa continues StorageVault’s strategic expansion into the Ontario market.
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 Policy 5.9. StorageVault is relying on exemptions from the formal valuation and minority approval requirements of MI 61-101 and TSX Venture Exchange Policy 5.9, in respect of the Acquisition and the issuance of the Payment Shares, 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.
1,481,481 Payment Shares at a deemed price of $2.70 per share, having an aggregate value of $4,000,000, were issued to Access in connection with the Acquisition, representing 0.42% of the issued and outstanding common shares of StorageVault. Prior to the closing of the Acquisition, Access owned or controlled 123,490,990 common shares, representing 34.86% of the issued and outstanding common shares of StorageVault. Immediately following the closing of the Acquisition, Access completed an internal transfer of 547,074 Payment Shares to Nawoc Holdings Limited, a company controlled by Access. Access now owns or controls 124,972,471 common shares or approximately 35.13% 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.