Spot Coffee (Canada) Ltd.
TSX VENTURE : SPP

Spot Coffee (Canada) Ltd.

June 16, 2014 14:10 ET

SPoT Coffee Licenses Orchard Park Cafe, Wins Beautification Award

TORONTO, ONTARIO--(Marketwired - June 16, 2014) - SPOT COFFEE (CANADA) LTD. (TSX VENTURE:SPP) ("SPoT" or the "Company") announced today that it has executed a License Agreement ("LA"), with Mr. Keith Bernard, to grant him a license ("License") for the operation of SPoT Orchard Park. Concurrent with the LA, the Company, via its wholly owned subsidiary, SPoT Coffee Buffalo Inc., has entered into a purchase and sale agreement pursuant to which it has agreed to transfer its 60% shareholding interest in SPoT Coffee Orchard Park LLC to Mr. Bernard, who presently owns 40% of the shares of SPoT Coffee Orchard Park LLC, for the return of capital contributed from SPoT in the amount of $100,000. In addition to earning ongoing monthly licensing fees in the form of a percentage of the café's gross revenue, SPoT will also derive revenue from its exclusive supplies of its roasted coffee, specialty foods and other SPoT branded products. This LA is an interim agreement which precedes the launch of SPoT's franchise program. Upon successful completion the franchise registration by the Company in the State of New York, SPoT Orchard Park will convert to a franchise café. This License Agreement is subject to final approval by the TSX Venture Exchange.

The Company is also pleased to announce that it is the recipient of the 2014 Business Community Beautification Award, which was presented to SPoT by the Board of Directors of the Orchard Park Chamber of Commerce. This award recognizes SPoT's contribution to the enhancement of the Orchard Park business community and acknowledges SPoT as an important asset to the town of Orchard Park, New York.

"We are excited to begin the franchising process with this interim agreement. This represents a major step in the right direction for the Company as we begin to move to a franchise system," commented Anton Ayoub, President of SPoT Coffee. "We are very proud of our award from the Orchard Park Chamber of Commerce. We thank the Orchard Park Chamber of Commerce for this honorable and distinguished recognition. SPoT Orchard Park is a perfect example of the seamless way a SPoT café can blend into its community and, simultaneously, stand out as an exemplary local business."

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 complement the unique attributes 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.

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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