SPoT Coffee (Canada) Ltd.
TSX VENTURE : SPP

SPoT Coffee (Canada) Ltd.

January 02, 2015 13:21 ET

SPoT Coffee Obtains Commitments for $1,500,000 in Equity Financing

TORONTO, ONTARIO--(Marketwired - Jan. 2, 2015) - SPOT COFFEE (CANADA) LTD. (TSX VENTURE:SPP) ("SPoT" or the "Company") is pleased to announce that the Company has obtained commitments for a private placement financing of units (each an "Equity Unit"), which will result in total proceeds of $1,500,000. Investors under the equity financing will be issued 30,000,000 Equity Units at a price of $0.05 per Equity Unit, with each Equity Unit consisting of one common share of SPoT (a "Common Share") and one-half of one common share purchase warrant. Each whole warrant issued from the equity financing will entitle the holder to acquire one additional Common Share at a price of $0.075 for a period of 4 years from closing. All of the Common Shares and warrants issued in connection with this financing are subject to a statutory four-month hold period in accordance with applicable securities laws. .

The Company plans to close the financing in multiple tranches with a first tranche of 7,000,000 Equity Units for gross proceeds of $350,000.

The capital raised under this financing will be utilized by SPoT to finalize the franchise registration which is in its final stage, financially support the rollout of the franchising program and for working capital. The Company expects to receive approval of its New York franchise license from the state of New York in early 2015 at which time the Company plans to move forward in fulfilling existing franchise requests for SPoT Coffee cafés and SPoT Express cafés.

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 suit their local neighbourhoods, creating warm and friendly gathering places 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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