Spot Coffee (Canada) Ltd.
TSX VENTURE : SPP

Spot Coffee (Canada) Ltd.

December 17, 2009 08:00 ET

SPoT Coffee Announces Continuation of $3 Million Financing

TORONTO, ONTARIO--(Marketwire - Dec. 17, 2009) - SPOT COFFEE (CANADA) LTD. (TSX VENTURE:SPP) ("SPoT" or the "Company"), announces that its proposed private placement financing for aggregate gross proceeds of up to $3 million (as previously announced on November 2, 2009) is ongoing. The terms of the proposed private placement are as follows: up to 15,000,000 units are to be issued at a price of $0.20 per unit, for aggregate consideration of up to $3,000,000. Each unit will consist of one common share of the Company and one-half of one (1/2) share purchase warrant, with each full warrant entitling the holder to acquire one (1) common share at a price of $0.25 for a period of three (3) years from the date of issue. All of the securities to be issued pursuant to the private placement will be subject to 4-month hold periods in accordance with applicable securities laws and regulatory policies. Closing is expected to occur in multiple tranches, as subscription proceeds and supporting documentation are received.

The proceeds of this financing will be used to further expand SPoT's suite of cafes. SPoT is in the process of preparing for the opening of its sixth cafe, located in Del Ray Beach, Florida, which is presently under construction and is anticipated to open during the first quarter of 2010. In addition to funding the final expenditures related to the Del Ray Beach cafe and working capital, the proceeds of this financing will be used to fund up to four additional cafes and the creation of a Central Kitchen within the City of Toronto. Two of the new cafes are expected to be located in Toronto, Ontario and two are expected to be located in Western New York State.

About SPoT

SPoT designs, builds and operates community oriented cafes that provide its customers from every lifestyle and culture with the highest quality service, signature light meals and roasted in-house gourmet coffee. SPoT has been successfully operating company-owned cafes in Western New York State and Canada since 2004.

Each SPoT cafe is a popular and friendly gathering place for its community where specialty coffee, upscale beverages, fresh baked goods, signature sandwiches, soups, salads and gourmet pizza, cakes, pastries and home baked goods are offered and enjoyed by its patrons in a warm, friendly and home-like environment.

The Company currently operates five cafes that range in size from 2,000 to in excess of 4,000 square feet with locations in Buffalo (two), Williamsville and Rochester in New York State and Toronto, Canada.

Unlike other conventional gourmet coffee houses and quick service restaurants that are built on uniformity of product and style, each SPoT cafe maintains several unique and key features, including:

- Dedication to create a friendly environment that nourishes and intensifies a sense of gathering and of community;

- Roasting in-house and blending SPoT's own award-winning premium Arabica coffee;

- Unwavering commitment to offer the customers of the Company the highest quality products and services;

- Innovative and varying cafe designs that consider both the culture and flavor of the specific communities of each cafe;

- Choice of corner locations for each SPoT cafe at the center of their neighborhoods;

- Ability to offer intimate and warm ambiances in each cafe to suit the social and private moods of SPoT's patrons; and

- Trained and dynamic service staff that are proud to call themselves "Spotters" who enjoy serving their customers and make them feel at home.

Forward Looking Statements

Except for statements of historical fact relating to the Corporation, certain information contained herein constitutes forward-looking statements. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Except as required by applicable securities requirements, the Corporation undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.

Neither TSX Venture Exchange nor ts Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of the release.

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