Spot Coffee (Canada) Ltd.
TSX VENTURE : SPP

Spot Coffee (Canada) Ltd.

February 08, 2011 14:14 ET

SPoT Coffee Announces Proposed $1,150,000 Private Placement

TORONTO, ONTARIO--(Marketwire - Feb. 8, 2011) - SPOT COFFEE (CANADA) LTD. (TSX VENTURE:SPP) ("SPoT" or the "Company") is pleased to announce a proposed private placement financing for aggregate gross proceeds of up to $1,150,000 of units (each a "Unit") at a price of $0.10 per Unit. Each unit will consist of one common share of SPoT (a "Common Share") and one-half of one common share purchase warrant (a "Warrant"). Each whole Warrant will entitle the holder to acquire one additional Common Share at a price of $0.15 for a period of 2 years from closing. The net proceeds from this offering will be used to fund the renovation of SPoT's Rochester café, including the addition of a more expansive kitchen to incorporate SPoT's gourmet pizza program, to fund two new locations, SPoT Hertel Avenue in Western New York and SPoT Parkplace in Toronto, and meet working capital requirements. This funding will enable SPoT to achieve eight operating cafés including strategic renovations to existing cafés. Hold periods will apply to the securities issued under this offering in accordance with applicable securities laws. This offering is subject to the approval of the TSX Venture Exchange and other customary conditions.

About SPoT

SPoT (www.spotcoffee.com) designs, builds and operates community-oriented cafés that provide its customers from every lifestyle and culture with the highest quality service, signature light meals and in-house roasted gourmet coffee. The current SPoT management team and directors have been successfully operating company-owned cafés since 2004.

Each SPoT café 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 six cafés 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, Delray Beach, Florida and Toronto, Canada. SPoT will begin construction of its seventh location in Western New York during the spring of 2011 and is currently developing new locations in North America.

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

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

  • In-house roasting 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 café designs that consider both the culture and flavor of the specific communities of each café;

  • Choice of corner locations for each SPoT café at the center of their neighborhoods;

  • Ability to offer intimate and warm ambiances in each café 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.

Contact Information

  • SPoT Coffee (Canada) Ltd.
    Lindsay Cross
    Investor Relations Manager
    (416) 368-2220
    lcross@spotcoffee.com