TORONTO, ONTARIO, Nov. 2, 2009 (Marketwire) -- SPOT COFFEE (CANADA) LTD. ("SPoT" or the "Company") (TSX VENTURE:SPP) is pleased to announce the terms of a proposed private placement financing for aggregate gross proceeds of up to $3 million and the proposed further expansion of its operations. The terms of the proposed private placement are as follows: up to 15,000,000 units are to be issued at a price of $0.20 per unit, for aggregate consideration of up to $3,000,000. Each unit will consist of one common share of the Company and one-half of one ( 1/2) share purchase warrant, with each full warrant entitling the holder to acquire one (1) common share at a price of $0.25 for a period of three (3) years from the date of issue. All of the securities to be issued pursuant to the private placement will be subject to 4-month hold periods in accordance with applicable securities laws and regulatory policies. Completion of the private placement is subject to the approval of the TSX Venture Exchange.
The proceeds of this financing will be used to further expand SPoT's suite of cafes. SPoT is in the process of preparing for the opening of its sixth cafe, located in Del Ray Beach, Florida, which is presently under construction and is anticipated to open during the first quarter of 2010. In addition to funding the final expenditures related to the Del Ray Beach cafe and working capital, the proceeds of this financing will be used to fund up to four additional cafes and the creation of a Central Kitchen within the City of Toronto. Two of the new cafes are expected to be located in Toronto, Ontario and two are expected to be located in Western New York State.
The primary responsibility of the Toronto Central Kitchen will be to roast coffee and to prepare and distribute high quality fresh baked desserts, sauces, soups and signature ingredients for distribution to the Toronto SPoT cafes. This facility will provide a controlled environment for the regional corporate chefs of SPoT to monitor the quality and consistency of SPoT's products. The Toronto Central Kitchen is also expected to reduce labor costs associated with the preparation of cafe and catering menu items, as well better utilize more expensive retail space.
About SPoT
SPoT designs, builds and operates community oriented cafes that provide its customers from every lifestyle and culture with the highest quality service, signature light meals and roasted in-house gourmet coffee.
