TORONTO, July 24, 2017 (GLOBE NEWSWIRE) -- STORAGEVAULT CANADA INC. ("StorageVault") (TSX-V:SVI) announced today, further to its June 26th, 2017 news release, that it has entered into an asset purchase agreement executed on July 24, 2017 with Access Self Storage Inc. ("Access"), Depotium Self Stockage Inc. and A-Z Storage Limited, subsidiaries of Access (collectively, the "Vendors"), to purchase for an aggregate purchase price of $34.2 million, subject to customary adjustments, all of the storage assets, property and business used in one Toronto area store, two stores in Quebec and three stores in Nova Scotia (the "Acquisition"). The Acquisition of the self storage stores in Toronto and Quebec continues StorageVault's strategic expansion into the Ontario and Quebec markets. The assets located in Nova Scotia will provide StorageVault with a total of four stores in the Maritimes once other previously announced transactions are closed. The Acquisition is subject to the acceptance of the TSX Venture Exchange and, as Access is a non-arm's length party to StorageVault, the Acquisition is considered to be a "related party transaction" as defined in Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101") and TSX Venture Exchange ("TSXV") Policy 5.9. Assuming all conditions in the purchase agreement are met or waived, it is anticipated that the closing of the Acquisition will occur on or before August 15, 2017.Purchase Price and PaymentThe purchase price for the Acquisition is $34.2 million, subject to adjustments, and is payable by the issuance of 714,286 ($2,000,000) common shares of StorageVault at a deemed price of $2.80 per common share, with the remainder of the purchase price being paid with funds on hand and first mortgage financing. Material Conditions Precedent to the AcquisitionThe independent Acquisition Committee of StorageVault approved the Acquisition, including the issuance of the common shares in relation to the Acquisition, on June 21, 2017. The obligations of StorageVault to complete the Acquisition are subject to initial conditions including, but not limited to: satisfactory due diligence; satisfactory Environmental Site Assessment Reports; satisfactory financing; and formal StorageVault board of director approval of the Acquisition. The initial conditions for ...Full story available on Benzinga.com
