SPoT Coffee (Canada) Ltd.
TSX VENTURE : SPP

SPoT Coffee (Canada) Ltd.

August 10, 2011 17:30 ET

SPoT Coffee Provides Update on New Cafe Openings

TORONTO, ONTARIO--(Marketwire - Aug. 10, 2011) - SPOT COFFEE (CANADA) LTD. (TSX VENTURE:SPP) ("SPoT" or the "Company") is continuing to execute on its strategic North American growth plan and is pleased to provide an update on the Company's current new café openings. Construction on SPoT Hertel, SPoT's seventh operating café, is progressing on schedule and is expected to open during October 2011. This new café is situated on a central prime corner location on Hertel Avenue in Buffalo, New York and incorporates many of SPoT's standard café elements including lounge and table style seating, window counters and a stage for live entertainment. In addition to these design aspects, SPoT Hertel will feature both an interior and exterior full wall mural, as well as two large outdoor patios for patrons to enjoy.

Additionally, construction on SPoT's eighth café and second in Toronto, SPoT Park Place, is scheduled to begin mid-October 2011 with an anticipated opening for early 2012. This is ahead of the Company's initial planned construction schedule for SPoT Park Place. SPoT Park Place is to be located in the urban development of Concord Park Place in north Toronto and highlights SPoT's exclusive relationship with Concord Adex, a well-known real estate developer, as their café of choice for their multi-condo urban development projects. SPoT Park Place will be centrally and exclusively located in the new urban neighbourhood development which is estimated to have a residential population exceeding 290,000.

This announcement comes after SPoT recently announced the closing of $750,000 in financing with the proceeds available to fund SPoT's café expansion program. SPoT is continuing to assess future café locations and is currently in the final stages of selecting the sites for cafés nine and ten. SPoT anticipates accelerated growth during 2012, leveraging its existing operating infrastructure in Western New York, Southern Ontario and Florida before a broader North American and international expansion commences.

SPoT is also announcing the grant of an aggregate of 2,201,931 options to acquire SPoT common shares at a price of $0.14 per common share to certain officers, directors and employees of the Company. These options will vest in twelve equal monthly installments beginning from the date of their grant. The options expire on the earlier of their fifth anniversary date or the time the optionees cease to serve as officers, directors or employees of the Company.

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 two more cafés currently under development. SPoT is currently evaluating several locations as part of its North American expansion.

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.

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