TORONTO, ONTARIO--(Marketwire - July 17, 2012) - SPOT COFFEE (CANADA) LTD. (TSX VENTURE:SPP) ("SPoT" or the "Company") is pleased to announce the Company has closed a $280,000 debenture financing with the proceeds available to fund the Company's new café expansion program. The investors under the financing are participating at a price of $1.00 per unit (each a "Unit") and subscribing for an aggregate total of 280,000 Units. Each Unit consists of a $1.00 par value note (a "Note") and two common share purchase warrants (each a "Warrant"). The Notes represent $280,000 5-year 9% secured subordinated promissory notes and each Warrant entitles the holder thereof to acquire one additional common share of the Company at a price of $0.25 for a period of five years from closing. The Notes and Warrants issued in connection with this financing are subject to a statutory four-month hold period in accordance with applicable securities laws, which will expire on November 18, 2012.
The capital will be utilized by SPoT to assist with the funding of the Company's ongoing new café expansion program. By this September SPoT will be opening its previously announced 8th and 9th locations, Transit Road in New York and Park Place in Toronto. Additionally, the Company remains on track to open two cafés in Saratoga Springs, one beginning operations by December 2012 and the second at the start of the first quarter of 2013. This will bring the total number of SPoT cafés to 11. SPoT will shortly provide more details for its 2013 café expansion program which will include an increased pace of new café openings and the commencement of regional licencing transactions.
About SPoT Coffee
SPoT Coffee trades on the TSX Venture Exchange under the symbol SPP. SPoT designs, builds and operates community oriented cafés that provides its customers with the highest quality service, signature healthy 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.