pcJ News Briefs – StorageVault Canada Inc. (TSX-V: SVI) has completed previously announced bought deal of 50,944,000 common shares at $2.65 per share for gross proceeds of $135 million.
The offering consisted a treasury offering of 32,076,000 common shares for $85 million and a secondary offering by SaskWorks Venture Fund Inc. and APEX II Investment Fund Limited Partnership, each of which are managed by PFM Capital Inc., of 18,868,000 common shares for $50 million.
Following the closing of the offering, SaskWorks will continue to own 23,802,719 common shares along with warrants to purchase 2,177,998 common shares and Apex II will own no common shares but will retain warrants to purchase 322,002 common shares.
Access Self Storage Inc., an entity controlled by StorageValut CEO Steven Scott and CFO Iqbal Khan, acquired 5,660,377 common shares pursuant to the offering for an aggregate purchase price of $14,999,999. Access now owns or controls 120,647,436 common shares, or approximately 36.33% of the total issued and outstanding common shares.
News Release
StorageVault Canada Inc. Announces Closing of $135 Million Bought Deal Offering of Common Shares
NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR DISSEMINATION IN THE UNITED STATES
STORAGEVAULT CANADA INC. (“StorageVault” or the “Corporation”) (SVI-TSX-V) is pleased to announce that it has closed its previously announced bought deal financing. A total of 50,944,000
common shares, consisting of 32,076,000 common shares sold from treasury and 18,868,000 common shares sold on a secondary basis from SaskWorks Venture Fund Inc. and APEX II Investment Fund Limited Partnership (collectively, the “Selling Shareholders”), have been sold at a price of $2.65 per common share for gross proceeds of $135,001,600, consisting of gross proceeds of $85,001,400 to the Corporation and gross proceeds of $50,000,200 to the Selling Shareholders (the “Offering”).
The syndicate of underwriters was co- led by National Bank Financial Inc. and GMP Securities L.P., and included Cormark Securities Inc., Raymond James Ltd., BMO Nesbitt Burns Inc., CIBC World Markets Inc., Scotia Capital Inc., TD Securities Inc., Canaccord Genuity Corp. and Industrial Alliance Securities Inc. (the “Underwriters”).
The net proceeds of the Treasury Offering will be used to pay down debt outstanding under current credit facilities and to fund previously announced and future potential acquisitions.
Exemption From MI 61-101 And TSXV Policy 5.9; And Early Warning
Access Self Storage Inc. (“Access”) acquired 5,660,377 common shares pursuant to the Offering. As Access is a non-arm’s length party of StorageVault, the acquisition of common shares by Access pursuant to the Offering 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. 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 acquisition by Access under the Offering, 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.
Access acquired the 5,660,377 common shares pursuant to the Offering at a price of $2.65 per common share for an aggregate purchase price of $14,999,999, representing 1.70% of the issued and outstanding common shares of StorageVault after the Offering. Prior to the Offering, Access owned or controlled 114,987,059 common shares (representing 38.33% of the issued and outstanding common shares of StorageVault). Upon completion of the Offering, Access now owns or controls 120,647,436 common shares, or approximately 36.33% of the total issued and outstanding common shares. The purchase of the common shares by Access was made for investment purposes. 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 storage locations in the provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, and Nova Scotia.
For further information, contact Mr. Steven Scott or Mr. Iqbal Khan:
Tel: 1-877-622-0205
ir@storagevaultcanada.com
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.