TORONTO, ONTARIO – SPOT COFFEE (CANADA) LTD. has announced 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.
