SPoT Coffee (Canada) Ltd.
TSX VENTURE : SPP

SPoT Coffee (Canada) Ltd.

October 23, 2012 07:45 ET

SPoT Coffee Engages Syndicate to Lead Financing

TORONTO, ONTARIO--(Marketwire - Oct. 23, 2012) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

SPOT COFFEE (CANADA) LTD. (TSX VENTURE:SPP) ("SPoT" or the "Company") is pleased to announce it has entered into an agreement with Jacob Securities Inc. acting as lead agent and bookrunner, together with Stonecap Securities Inc. and Byron Capital Markets Ltd. as agents (together the "Agents") in connection with a private placement offering to raise up to $5,000,000. The offering will be made up of a combination of equity and debt, the terms of which will be priced in the context of the market at the closing of the offering.

The Company plans to use the net proceeds from this offering to further accelerate its 2013 expansion plan which will include a minimum of ten, up from the previously announced eight, new corporate cafés. The development of corporate cafés will continue within SPoT's current geographic footprint in Southern Ontario and Western and Upstate New York with further expansion into central and eastern parts of New York State. Management has identified communities for the new corporate cafés and intends to secure locations by signing leases in the coming months. Additionally, SPoT will focus on its high growth and high margin business segments by making investments in the Company's corporate catering program, the wholesale and retail distribution of the Company's award winning gourmet roasted coffee beans and blends, as well as continuing to open additional licensed locations in Florida with other new regional licensing programs anticipated to commence in 2014.

The offering is subject to certain conditions, including the receipt of all necessary approvals, including the approval of the TSX Venture Exchange, the securities regulatory authorities and other usual closing conditions. All of the common shares, notes and warrants issued in connection with these financings are subject to a statutory four-month hold period in accordance with applicable securities laws.

ABOUT SPOT COFFEE

SPoT Coffee trades on the TSX Venture Exchange under the symbol SPP. SPoT designs, builds and operates community oriented cafés that provide its customers with the highest quality service, signature made-to-order meals and the world's finest in-house roasted gourmet coffee. Each SPoT café is distinctively designed to meet the uniqueness of the local neighborhood, creating a warm and friendly gathering place for the community. SPoT's commercial business focuses on retail stores, business accounts and third party resellers such as universities and hospitals.

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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