PFM Capital Inc., a private equity and venture-capital management firm, has agreed to allow two of its investment funds make an equity investment in StorageVault Canada Inc. Subject to certain conditions, the commitment would involve two private placements.
In the first, the funds will acquire 7,142,857 common shares of StorageVault at $0.28 per share for total gross proceeds of $2 million. The placement is subject to the negotiation of a joint venture between StorageVault, CanStore Self Storage LP and CSS Holdings LP. The funds may provide an additional $2 million in equity to StorageVault, priced at $0.32 per common share, subject to PFM being satisfied with the financial and operational benchmarks established by the joint venture and other conditions.
The net proceeds from both private placements will be used by StorageVault to fund the joint venture as well as for general working capital purposes.
StorageVault owns and operates Canadian PUPS portable storage in Saskatoon, Trans Can Mini-Stor in Regina, and Kenaston Self Storage in Winnipeg. The Regina and Winnipeg sites are traditional self-storage facilities operating in conjunction with portable-storage franchises. The company intends to grow through the acquisition of self-storage properties and the development of portable-storage facilities in Canada. Its common shares are listed on the TSX Venture Exchange.
Saskatchewan, Canada-based PFM Capital manages $300 million in private equity in West Canada. The company has been managing private equity and venture-capital investments since 1993, and currently holds 38 private and publicly traded companies in the portfolios of its managed funds.