StorageVault to Acquire 2 Storage Locations; Completes Previously Announced Purchase of Storage Asset; Issues Options
December 28, 2023
STORAGEVAULT CANADA INC. (“StorageVault”) (SVI-TSX) is pleased to announce the following: (1) it has agreed to acquire two stores in Ontario for $20,000,000; (2) it has completed the acquisition of one of the stores announced on November 6, 2023 for an aggregate purchase price of $13,500,000; and (3) it has issued 1,600,000 options.
Acquisition of 2 Storage Locations in Ontario
StorageVault has agreed to acquire two stores from two arm’s length vendor groups (the “Vendors”) for an aggregate purchase price of $20,000,000, subject to customary adjustments (the “Acquisitions”), and the purchase price is expected to be paid with funds on hand and first mortgages. The Acquisitions are expected to close in Q1 2024.
The obligations of StorageVault to complete the Acquisitions are subject to conditions including, but not limited to: board approval, satisfactory due diligence, and satisfactory environmental site assessment reports.
Completes Previously Announced Purchase of Storage Asset
Further to its November 6, 2023 and December 8, 2023 news releases, StorageVault has completed the acquisition of a Quebec City located storage asset for $13,500,000, subject to customary adjustments. The purchase price was paid with funds on hand.
With these acquisitions, StorageVault has now announced $130.1 million of acquisitions this year, of which $94.6 million have closed in fiscal 2023. The one remaining transaction announced on November 6, 2023, and the Acquisitions announced above, are expected to close in Q1 2024.
Issuance of Options
StorageVault has granted, subject to regulatory approval, a total of 1,600,000 options to purchase common shares of StorageVault to directors, officers, employees and consultants of StorageVault. The options were issued with an exercise price of $5.23 per common share and an expiry date of December 28, 2033. After this option issuance, StorageVault has 36,608,500 options issued and outstanding.
About StorageVault Canada Inc.
StorageVault owns and operates 242 storage locations across Canada. StorageVault owns 211 of these locations plus over 5,000 portable storage units representing over 11.7 million rentable square feet on over 685 acres of land. StorageVault also provides last mile storage and logistics solutions and professional records management services, such as document and media storage, imaging and shredding services.
For further information, contact Mr. Steven Scott or Mr. Iqbal Khan:
Forward-Looking Information: This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein are forward-looking information. In particular, this news release contains forward-looking information in relation to: the proposed Acquisitions; the timing for completion of the proposed Acquisitions and the remaining acquisition announced in the November 6, 2023 news release; the satisfaction of the conditions for completion of the proposed Acquisitions; and the consideration to be paid for the purchase price for the Proposed Acquisitions. 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: StorageVault board approval of the proposed Acquisitions, the completion of satisfactory due diligence by StorageVault in relation to the proposed Acquisitions, the satisfactory fulfilment of all of the conditions precedent to the proposed Acquisitions including satisfactory due diligence and satisfactory environmental site assessment reports; the receipt of all required approvals for the proposed Acquisitions, including StorageVault board approvals or third party approvals (including for mortgage commitments or assumptions); market acceptance of the proposed Acquisitions; the receipt of, and accuracy of the value of, appraisals received for the proposed Acquisitions; acceptable financing to complete the proposed Acquisitions; the level of activity in the storage business and the economy generally; consumer interest in StorageVault’s services and products; competition and StorageVault’s competitive advantages; and StorageVault’s continued response and ability to navigate the COVID-19 pandemic being consistent with, or better than, its ability and response to date. 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; general capital market conditions and market prices for securities; delay or failure to receive board of directors, third party or regulatory approvals; the actual results of StorageVault’s future operations; competition; changes in legislation, including environmental legislation, affecting StorageVault; the timing and availability of external financing on acceptable terms; conclusions of economic evaluations and appraisals; lack of qualified, skilled labour or loss of key individuals; risks related to the COVID-19 pandemic; and the impact that the COVID-19 pandemic may have on StorageVault which may include: a short-term delay in payments from customers, an increase in accounts receivable and an increase of losses on accounts receivable; decreased demand for the services that StorageVault offers; and a deterioration of financial markets that could limit StorageVault’s ability to obtain external financing. 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.sedarplus.ca. Although StorageVault has attempted to identify important risks and 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. Readers are cautioned that the foregoing list of factors is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking information as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Forward-looking information contained in this news release is expressly qualified by this cautionary statement. The forward-looking information contained in this news release represents the expectations of StorageVault as of the date of this news release and, accordingly, is subject to change after such date. However, StorageVault expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities law.