STORAGEVAULT CANADA INC.
(“
StorageVault” or the
“
Corporation”) (
SVI-TSX)
announced today that a quarterly dividend of $0.002831 per common
share (“
Common Share”) will be payable on April
17, 2023 to shareholders of record on March 31, 2023, with an
ex-dividend date of March 30, 2023. This dividend has been
designated as an “eligible dividend” for Canadian income tax
purposes.
StorageVault is also pleased to announce that it
has received conditional acceptance from the Toronto Stock Exchange
(the “TSX”) to conduct a Normal Course Issuer Bid
(“NCIB”) to purchase for cancellation, during the
12-month period starting March 18, 2023: (i) up to 18,905,000 of
the outstanding common shares of the Corporation (the
“Common Shares”), representing 5%
of the 378,100,000 Common Shares outstanding; (ii) outstanding
5.75% senior unsecured hybrid debentures of the Corporation issued
in July 2020 and due on January 31, 2026 (“2020
Debentures”) in the aggregate principal amount of
$3,750,000, representing 5% of the currently outstanding
$75,000,000 aggregate principal amount of 2020 Debentures; (iii)
outstanding 5.50% senior unsecured hybrid debentures of the
Corporation issued in July 2021 and due on September 30, 2026
(“2021 Debentures”) in the
aggregate principal amount of $2,875,000, representing 5% of the
currently outstanding $57,500,000 aggregate principal amount of
2021 Debentures; and (iv) outstanding 5.00% convertible senior
unsecured debentures of the Corporation issued in January 2023 and
due on March 31, 2028 (“2023
Debentures” and collectively, with the 2020
Debentures and 2021 Debentures, the “Debentures”)
in the aggregate principal amount of $5,000,000, representing 5% of
the currently outstanding $100,000,000 aggregate principal amount
of 2023 Debentures. Each NCIB will end on March 17, 2024, unless
the maximum amount of Common Shares or Debentures, as applicable,
is purchased before then or StorageVault provides earlier notice of
termination. StorageVault will not acquire through the facilities
of the TSX more than 149,233 Common Shares, $7,189 aggregate
principal amount of 2020 Debentures, $5,587 aggregate principal
amount of 2021 Debentures or $129,229 aggregate principal amount
2023 Debentures, during a trading day, being 25% of the average
daily trading volume of the Common Shares (596,935), 2020
Debentures ($28,756), 2021 Debentures ($22,349) and 2023 Debentures
($516,916), respectively, on the TSX from September 1, 2022 (or,
January 9, 2023, with respect to the 2023 Debentures) until
February 28, 2023, subject to certain prescribed exceptions. The
stock symbol on the TSX for the Common Shares, 2020 Debentures,
2021 Debentures and 2023 Debentures is SVI, SVI.DB, SVI.DB.B and
SVI.DB.C, respectively.
The purchase and payment for the Common Shares
and Debentures will be made by StorageVault through the facilities
of the TSX or alternative trading systems. National Bank Financial
Inc. has been selected as StorageVault’s agent for the NCIB. The
price paid for the Common Shares or Debentures, as applicable, will
be, subject to NCIB pricing rules contained in securities laws, the
prevailing market price of such Common Shares or Debentures, as
applicable, on the TSX at the time of such purchase. StorageVault
intends to fund the purchases out of available cash.
StorageVault believes that the market price of
its Common Shares and Debentures may not reflect their underlying
value and the Board of Directors has authorized this initiative
because, in the Board’s opinion, the proposed purchase of Common
Shares and Debentures pursuant to the NCIB constitutes an
appropriate use of StorageVault’s funds, and the repurchase of its
Common Shares and Debentures is one way of creating securityholder
value.
To the knowledge of StorageVault, no director,
senior officer or other insider of StorageVault currently intends
to sell any Common Shares or Debentures under the NCIB. However,
sales by such persons through the facilities of the TSX may occur
if the personal circumstances of any such person changes or any
such person makes a decision unrelated to these NCIB purchases. The
benefits to any such person whose Common Shares or Debentures are
purchased would be the same as the benefits available to all other
holders whose Common Shares or Debentures are purchased.
StorageVault conducted a previous NCIB for up to
18,931,054 Common Shares, $3,750,000 2020 Debentures and $2,875,000
2020 Debentures through the facilities of the TSX, which NCIB will
end on March 17, 2023. Pursuant to the previous Common Share NCIB,
StorageVault purchased an aggregate of 1,769,000 Common Shares, at
a volume weighted average price of $5.69 per Common Share, and no
2020 Debentures or 2021 Debentures were purchased.
About StorageVault Canada
Inc.StorageVault owns and operates 238 storage locations
across Canada. StorageVault owns 206 of these locations plus over
4,500 portable storage units representing over 11.4 million
rentable square feet on over 665 acres of land. StorageVault also
provides last mile storage and logistics solutions and professional
records management services, such as document and media storage,
imaging and shredding services.
For further information, contact Mr. Steven
Scott or Mr. Iqbal Khan:
Tel: 1-877-622-0205ir@storagevaultcanada.com
Forward-Looking Information:
This news release contains “forward-looking information” within the
meaning of applicable Canadian securities legislation. All
statements, other than statements of historical fact, included
herein are forward-looking information. In particular, this news
release contains forward-looking information regarding: the NCIBs,
including the commencement and end date of the NCIBs. There can be
no assurance that such forward-looking information will prove to be
accurate, and actual results and future events could differ
materially from those anticipated in such forward-looking
information. This forward-looking information reflects
StorageVault’s current beliefs and is based on information
currently available to StorageVault and on assumptions StorageVault
believes are reasonable. These assumptions include, but are not
limited to: the underlying value of StorageVault and its Common
Shares and Debentures; the ability of StorageVault to complete
purchases under the NCIBs and final TSX acceptance of the NCIBs;
the level of activity in the storage business and the economy
generally; consumer interest in StorageVault’s services and
products; competition and StorageVault’s competitive advantages;
trends in the storage industry, including macro-trends in relation
to increased growth and growth in the portable storage business;
the availability of attractive and financially competitive
acquisitions in the future; the potential closing of previously
announced acquisitions, if any, continuing to proceed as they have
progressed to date; future performance of StorageVault being
consistent with or better than past performance, including revenue
and expenses being consistent with or better than historical
revenue and expenses; and StorageVault’s continued response and
ability to navigate the COVID-19 pandemic being consistent with,
or better than, its ability and response to date. Forward-looking
information is subject to known and unknown risks, uncertainties
and other factors that may cause the actual results, level of
activity, performance or achievements of StorageVault to be
materially different from those expressed or implied by such
forward-looking information. Such risks and other factors may
include, but are not limited to: general business, economic,
competitive, political and social uncertainties; general capital
market conditions and market prices for securities; delay or
failure to receive board of directors, third party or regulatory
approvals; the actual results of StorageVault’s future operations;
competition; changes in legislation, including environmental
legislation, affecting StorageVault; the timing and availability of
external financing on acceptable terms; conclusions of economic
evaluations and appraisals; lack of qualified, skilled labour or
loss of key individuals; risks related to the COVID-19 pandemic
including various recommendations, orders and measures of
governmental authorities to try to limit the pandemic, including
travel restrictions, border closures, non-essential business
closures, service disruptions, quarantines, self-isolations,
shelters-in-place, curfews, stay-at-home orders, social distancing
and mandatory vaccination policies, disruptions to markets,
economic activity, financing, supply chains and sales channels,
and a deterioration of general economic conditions including a
possible national or global recession; and the impact that the
COVID-19 pandemic may have on StorageVault which may include: a
short-term delay in payments from customers, an increase in
accounts receivable and an increase of losses on accounts
receivable; decreased demand for the services that StorageVault
offers; and a deterioration of financial markets that could limit
StorageVault’s ability to obtain external financing. A description
of additional risk factors that may cause actual results to differ
materially from forward-looking information can be found in
StorageVault’s disclosure documents on the SEDAR website at
www.sedar.com. Although StorageVault has attempted to identify
important factors that could cause actual results to differ
materially from those contained in forward-looking information,
there may be other factors that cause results not to be as
anticipated, estimated or intended. Readers are cautioned that the
foregoing list of factors is not exhaustive. Readers are further
cautioned not to place undue reliance on forward-looking
information as there can be no assurance that the plans, intentions
or expectations upon which they are placed will occur.
Forward-looking information contained in this news release is
expressly qualified by this cautionary statement. The
forward-looking information contained in this news release
represents the expectations of StorageVault as of the date of this
news release and, accordingly, is subject to change after such
date. However, StorageVault expressly disclaims any intention or
obligation to update or revise any forward-looking information,
whether as a result of new information, future events or otherwise,
except as expressly required by applicable securities law.
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