Pathfinder Ventures (TSX-V:RV) Inc has told investors it is expanding into the recreational vehicle (RV) and self-storage space with the acquisition of Black Sheep Income Corp (BSIC), a private BC company, in a cash and share deal worth C$4.5 million.
BSIC owns and operates one stabilized RV & self-storage business in Penticton and one operating self-storage site with re-development potential in Nanaimo and under the letter of intent (LOI), the firm will also acquire the contracts to buy two existing RV parks and campgrounds, one in Columbia Valley along the Kooteney River, BC and the other in the foothills of the Rocky Mountains of Alberta.
In addition, the founders and management of BSIC, Cathy Butler and Mark O'Donoghue, will join the Pathfinder executive team as chief investment officer (CIO) and chief financial officer (CFO) respectively, and Butler will be appointed as a director at Pathfinder.
"The continued growth in RV sales and outdoor recreation has led to an increase in demand for RV & boat storage locations, and high-density development planned in our target locations are contributing to demand for self-storage," said Joe Bleackley, founder and CEO at Pathfinder.
READ: Pathfinder Ventures plans to aggressively add to its three operating RV resorts under the Pathfinder Camp Resorts brand in 2022
"We are really looking forward to the financial management and operational expertise that Mark and Cathy offer the Pathfinder team and we look forward to this additional leadership to continue to fuel the growth of Pathfinder Ventures (TSX-V:RV)."
Pathfinder will buy all outstanding shares of BSIC for around C$4.5 million, to be satisfied by way of 20% cash and 80% by Pathfinder shares at an agreed deemed price of C$0.20 per share.
Subsequently, 20% of the consideration shares shall be subject to escrow until July 15, 2023.
BSIC acquired the operating RV and self-storage location in Nanaimo last year and plans to develop the 2.4 acres of industrial zoned land along the Trans-Canada Highway. It bought the 1.86-acre Penticton self-storage site in 2020 and has operated it since, consistently improving revenues and net operating income.
BSIC was attracted to the specialized container-based storage model due to the reduced capital cost versus traditional storage and the flexibility the containers provide in that they can be deconstructed, flat packed and shipped to different sites, noted Pathfinder.
Pathfinder Ventures (TSX-V:RV) is developing a network of premier branded, upscale, and family-friendly RV parks and campgrounds under the 'Pathfinder Camp Resorts' name.
It currently has three camp resorts located in BC and is focused on growing its network through both acquisitions and new construction.
Contact the writer at giles@proactiveinvestors.com