Spot Coffee (Canada) Ltd.

Spot Coffee (Canada) Ltd.

February 05, 2010 10:42 ET

SPoT Coffee Announces Partnership With Medaille College for New Student-Run Cafe

TORONTO, ONTARIO--(Marketwire - Feb. 5, 2010) - SPOT COFFEE (CANADA) LTD. (TSX VENTURE:SPP) ("SPoT" or the "Company") is pleased to announce a partnership with Medaille College in Buffalo, New York to open a new student-run cafe. The cafe will exclusively feature SPoT menu items including gourmet roasted coffee, freshly baked pastries and desserts and offer a comfortable place for students to gather and call their own.

The achievement of this partnership is important for the continued growth of SPoT's expanding portfolio of commercial accounts which currently includes customers in Western New York such as Dash's Supermarket, Millard Fillmore Suburban Hospital, Rochester Institute of Technology and D'Youville College. In addition to SPoT's cafe expansion program whereby management is targeting to have ten cafes fully operating or under development by the end of 2010, SPoT is also strategically expanding its commercial account program to form an additional revenue stream and increase the Company's brand identity.

With historic roots dating back to 1875, Medaille College is situated within the historic Olmsted Crescent in the heart of Buffalo, New York, with branch campuses in Amherst and Rochester in New York State. The new cafe, located in the Main Building on the Buffalo Campus, is entirely student-run and will be managed by Medaille's chapter of Student in Free Enterprise, a student led organization focused on fostering entrepreneurship in students. The new enterprise will provide Medaille students with the opportunity to gain hands-on business experience as students are able to apply what they learn in the classroom directly to managing the cafe.

Mr. Richard Gress, CEO of SPoT USA Operations commented: "The expansion of our commercial account program has been a critical step for the continued broadening and recognition of the SPoT brand name. We expect great things with these types of programs and will look to expand the commercial account program globally as the SPoT brand continues to be a recognized favorite in the communities we service."

Laura Lee Lawrence, Community Relations and Event Manager, further stated, "SPoT has always played an active role in the communities in which they serve. Our partnership with Medaille College has enabled us to proudly be affiliated with a program that aids in the development of young entrepreneurs while simultaneously providing the campus with the freshest, highest quality coffee and pastries. We are so pleased by the opportunity to not only serve the tastes of this new community, but also play a part in their bright and prosperous futures."

Medaille College celebrated the opening of the cafe with an official ribbon cutting ceremony in which members of SPoT management were present to celebrate and express their appreciation for this partnership.

Additionally, SPoT announces the closing of its previously announced offering of units at a price of $0.20 per unit. An aggregate of 1,657,500 units have been issued, for aggregate gross proceeds of $331,500. Each unit consists of one common share of SPoT and one-half of one common share purchase warrant. Each whole warrant will entitle the holder to acquire one additional common share at a price of $0.25 on or before January 29, 2013. The offering was completed on a non-brokered basis and no finders' fees were paid. The proceeds of this financing will be used to further expand SPoT's suite of cafes. All of the securities that have been issued pursuant to the private placement will be subject to 4-month hold periods in accordance with applicable securities laws and regulatory policies, which will expire on June 6, 2010.

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. The current SPoT management team 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 sq. ft. with locations in Buffalo (two), Williamsville and Rochester in New York State and Toronto, Canada. During the second quarter of 2010 SPoT will be opening its sixth cafe in Del Ray Beach, Florida.

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 its 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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