StorageVault of Canada announced today (MarketWire, Trading Markets, Inside Self Storage) that two investment funds managed by PFM Capital will, collectively, make a $4,000,000 preferred share investment in StorageVault. StorageVault expects the preferred share financing deal to close on or around March 17 of this year. StorageVault will draw down the investment in two tranches of $2,000,000 each, with the first tranche being drawn down on the closing date (March 17), and the second tranche being drawn down within one year of the closing date -- or by March 17, 2011. StorageVault will use the money to buy a self-storage facility in Cambridge, Ontario, to develop PUPS portable storage at that location, and for general working capital to cover operating expenses.
In return for their investment in StorageVault, PFM Capital's investment funds will receive preferred shares of stock in StorageVault. The preferred shares will be issued to the funds for the price of $1 per share. At later dates, under the terms drawn up in the deal, the preferred shares may be retracted or redeemed.
Preferred shares are a second class of stock often purchased by venture capitalists and investors. Preferred share stock usually does not confer voting rights in the company, but may have other benefits. StorageVault's common shares are listed on the TSX Venture Exchange.
PFM Capital is a Georgia-based private equity and venture-capital firm. StorageVault, based in Regina, Canada, is the owner and operator of Trans Can Mini-Stor of Regina, Kenaston Self Storage of Winnipeg, and Canadian PUPS of Saskatoon. Canadian PUPS only offers portable self-storage, while Trans Can and Kenaston offer both fixed space units and portable storage facilities. StorageVault's business plan calls for it to develop more portable storage, while also expanding its self-storage properties.
Sources used:
"StorageVault Canada acquires Ontario self-storage business," Inside Self-Storage, 3/5/2010.
"StorageVault Canada Inc. announces the acquisition of a Cambridge, Ontario self-storage business," MarketWire, 3/4/2010.
"StorageVault Canada Inc. announces the acquisition of a Cambridge, Ontario self-storage business," Trading Markets, 3/4/2010.