StorageVault Completes Previously Announced Purchase of 3 Storage Assets and RecordXpress
TORONTO, April 12, 2019 (GLOBE NEWSWIRE) -- STORAGEVAULT CANADA INC. (“StorageVault”) (SVI-TSX-V) is pleased to announce that, further to its April 5, 2019 news release, it has completed the acquisition of two stores in the Greater Toronto Area, a 4 acre storage lot in London, Ontario and the assets and business of RecordXpress, an information and records management business (collectively, the “Acquisition”) from Access Self Storage Inc. and RecordXpress Inc. (collectively “Access”), for an aggregate purchase price of $32.5 million. The Acquisition is a non arm’s-length transaction.
The purchase price for the Acquisition in the amount of $32,500,000, subject to customary adjustments, was paid by the issuance of 2,964,285 common shares of StorageVault (“Payment Shares”) at a deemed aggregate price of $8,300,000 or $2.80 per common share, with the remainder being paid with funds on hand and mortgage financing. The Payment Shares are subject to a hold period that expires on August 11, 2019.
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.
2,964,286 Payment Shares at a deemed price of $2.80 per share, having an aggregate value of $8,300,000, were issued to Access in connection with the Acquisition, representing 0.83% of the issued and outstanding common shares of StorageVault. Prior to the closing of the Acquisition, Access owned or controlled 124,972,471 common shares, representing 35.12% of the issued and outstanding common shares of StorageVault. Access now owns or controls 127,936,757 common shares or approximately 35.95% 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 161 storage locations in the provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, and Nova Scotia. StorageVault owns 107 of these locations plus over 4,600 portable storage units representing over 6 million rentable square feet.
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.