StorageVault Canada Inc. has entered into an acquisition agreement to acquire a self-storage facility in Cambridge, Ontario, Canada, from an arm's-length vendor.
The aggregate purchase price is $2.3 million (subject to customary adjustments). The acquisition agreement is subject to a number of conditions, including completion of due diligence and environmental investigations with respect to the property that must be satisfactory to StorageVault, financing, and the approval by the board of directors of StorageVault. If all conditions are satisfied, the acquisition is scheduled to close on April 23, 2010.
The purchase price payment terms for the acquisition will be a combination of cash, bank debt financing, and the payment of a refundable deposit made to the vendor upon execution of the agreement. StorageVault intends to finance the acquisition with secured bank debt and the proceeds from a private placement.