StorageVault to Acquire 15 Storage Locations for $100 Million

TORONTO, March 03, 2021 (GLOBE NEWSWIRE) -- STORAGEVAULT CANADA INC. (“StorageVault”) (SVI-TSX-V) has agreed to acquire 15 stores from seven vendor groups (collectively, the “Vendors”) for an aggregate purchase price of $100,000,000, subject to customary adjustments (the “Acquisitions”). Five of the Acquisitions are arm’s length and two, totaling $10,700,000, are related party acquisitions (the “Related Party Acquisitions”) with Access Self Storage Inc. or its affiliates or associates (collectively, “Access”) as the Vendor. It is anticipated that the Acquisitions will close in Q1 and Q2 2021.

Seven of the assets are located in Ontario, two in Saskatchewan and six in Alberta. Six of the stores are currently managed by StorageVault. The Acquisitions will result in StorageVault owning 182 stores and owning and managing 221 across Canada.

Purchase Price and Payment
The aggregate purchase price is $100,000,000, subject to adjustments, and is payable by the issuance of an aggregate of up to approximately $15,000,000 of StorageVault common shares to certain of the Vendors based on an agreed upon VWAP ending two days prior to closing, with the remainder of the aggregate purchase price being paid with funds on hand and mortgage financing.

Conditions Precedent to the Acquisitions
The obligations of StorageVault to complete the Acquisitions are subject to conditions including, but not limited to: satisfactory due diligence, obtaining first mortgage commitments, and satisfactory environmental site assessment reports. The obligations of both StorageVault and the Vendors to complete the closing of the Acquisitions are subject to the satisfaction of other customary closing conditions and include acceptance of the TSX Venture Exchange (“TSXV”). None of the seven Vendor group Acquisitions are conditional or contingent on the completion of the other Acquisitions.

Exemption from MI 61-101 and TSXV Policy 5.9
As Access is a non-arm’s length party to StorageVault, ‎the Related Party Acquisitions are considered “related party transactions” under MI 61-101 and 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 Related Party Acquisitions, 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.