TORONTO, ONTARIO – SPOT COFFEE (CANADA) LTD. (“SPoT” or the “Company”) is pleased to announce that it has secured debt financing in the amount of $300,000 to fund working capital in connection with the opening of its two newest cafés, which are located in Glen Falls, New York and Orchard Park, New York.
The principal amount of the loans is $300,000 and will bear interest at the rate of 12% per annum, payable at maturity.
The loans are for a term of 90 days, with the Company retaining the right to re-new the loans for an additional 90 days.
The loans may be repaid in all or in part at any time prior to maturity and are secured by assets of the Company.
It is expected that the loans will be re-paid from the sale of one or more of the Company’s corporate cafés. As announced in SPoT’s press release dated February 5, 2014, the Company is moving towards a franchise business model, which will be built upon the sale of four (4) of its corporate-owned cafés, each of which will become SPoT’s initial franchisees.
The Company is presently in negotiations with a number of investors interested in purchasing one or more of SPoT’s corporate cafés.
Furthermore, the Company has been receiving numerous inquiries for new SPoT Coffee franchise cafés as the Company progresses with its formal application for New York State franchise registration.
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.
