Spot Coffee (Canada) Ltd.
TSX VENTURE : SPP

Spot Coffee (Canada) Ltd.

March 07, 2011 15:11 ET

SPoT Coffee Closes Financing and Commences New Cafe Developments

TORONTO, ONTARIO--(Marketwire - March 7, 2011) - SPOT COFFEE (CANADA) LTD. (TSX VENTURE:SPP) ("SPoT" or the "Company") is pleased to announce that it has closed its previously announced private placement for total proceeds of $1,150,000 at a price of $0.10 per unit (each a "Unit"). Each Unit consists of one common share in the capital of SPoT (a "Common Share") and one-half of one common share purchase warrant (a "Warrant"). Each whole Warrant entitles the holder to acquire one additional Common Share at a price of $0.15 for a period of three years from closing. The Common Shares and Warrants issued in connection with the private placement are subject to a statutory four-month hold period in accordance with applicable securities laws.

The financing was completed by SPoT on a non-brokered basis and has been subscribed to by 19 investors. SPoT would like to thank its board of directors for their continued strong financing support and SPoT is also very pleased to welcome 14 new subscribers to the Company.

SPoT is continuing to achieve its North American growth and expansion plans. Portions of the proceeds from this financing will be used to fund the development of SPoT's seventh new cafe, SPoT Hertel, and the renovation of the SPoT Rochester cafe, both in Western New York. These projects have already started and the Company anticipates SPoT Rochester being completed within 8-10 weeks and SPoT Hertel being fully operational by summer 2011.

SPoT Hertel is centrally located in the historic North Buffalo community on Hertel Avenue, a vibrant commercial and residential strip. The new cafe will feature 3,250 square feet of indoor space with a large outdoor patio for SPoT patrons to enjoy. SPoT Hertel will offer SPoT's complete menu of gourmet food including SPoT's famous Belgian waffles, freshly prepared gourmet pizza, signature sandwiches, SPoT's own in-house roasted coffee and an assortment of freshly baked deserts and goods. Similar to all SPoT cafes, the interior of the cafe will include a large wall mural created by a local artist which will directly reflect the Hertel community.

SPoT Rochester first opened in 2000 and is situated on the corner of East Avenue and Mathews Street in Rochester, New York. The building was previously home to a Chevrolet car dealership and highlights 35' ceilings, a large arching window, spacious seating areas, and a second floor mezzanine. The renovations will preserve many of the historical design elements and will continue to enhance the overall cafe structure including an updated service bar, an enhanced seating area with comfortable parlor style seating, and a new enlarged kitchen space. The renovated kitchen will support the addition of SPoT's gourmet pizza program as well as SPoT's Belgian waffles. Customers can continue to enjoy all of SPoT's signature menu items including the popular all day breakfast. The newly renovated cafe will maintain its commitment to providing a comfortable meeting place for the Rochester community and will continue to host local bands and showcase the art work of community artists. Customers of the renovated cafe will also now have access to free Wi-Fi.

SPoT Coffee management anticipates approximately a 40% total overall reduction of operating expenses at SPoT Rochester as a result of the renovation which reduces the total square footage of the cafe by approximately 2,000 feet. Furthermore, it is estimated that the improved, more efficient design, interior renovations, and enhanced food program will support an increase in annual sales at that location.

ABOUT SPOT

SPoT (www.spotcoffee.com) 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 in-house roasted gourmet coffee. The current SPoT management team and directors have been successfully operating company-owned cafes 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 six 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, Delray Beach, Florida and Toronto, Canada. SPoT is currently constructing its seventh location in Western New York 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 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;

  • 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 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 Company, 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 Company 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