Completes the Purchase of 8 Storage Assets for $98.6 Million TORONTO, Nov. 16, 2021 (GLOBE NEWSWIRE) -- STORAGEVAULT CANADA INC. (“StorageVault”) (SVI-TSX-V) is pleased to announce that, further to its October 13, 2021 news release, it has completed the acquisition of 8 stores (collectively, the “Acquisitions”) from five vendor groups (collectively, the “Vendors”), for an aggregate purchase price of $98.6 million. Three of the Acquisitions are arm’s length and five, totaling $72 million, are related party acquisitions (the “Related Party Acquisitions”) with Access Self Storage Inc. or its affiliates or associates (collectively, “Access”) as the Vendor.
The purchase price for the Acquisitions in the amount of $98.6 million, subject to customary adjustments, was paid by the issuance of an aggregate of 3,327,246 common shares of StorageVault (“Payment Shares”) at an aggregate price of $20,000,000, with the remainder being paid with funds on hand, a promissory note and mortgage assumption. The Payment Shares are subject to a hold period that expires March 6, 2022.
The balance of the $130,000,000 of transactions announced on October 13, 2021 are expected to close before the end of the fiscal year.
Exemption from MI 61-101 and TSXV Policy 5.9
As Access is a non-arm’s length party to StorageVault, certain of the Related Party Acquisitions are 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 certain of the Related Party Acquisitions and the issuance of $15,000,000 of the Payment Shares pursuant to 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.
https://www.globenewswire.com/news-release/2021/11/16/2335865/0/en/StorageVault-Completes-the-Purchase-of-8-Storage-Assets-for-98-6-Million.html