TORONTO, Ontario, Canada – SPoT Coffee (CANADA) LTD. is pleased to announce a non-brokered private placement offering of up to 42,500,000 units (each a “Unit”) at a price of C$0.05 per Unit for aggregate gross proceeds of up to C$2,125,000.
Each Unit will consist of one common share of SPoT (a “Common Share”) and one-half of one common share purchase warrant (a “Warrant”).
Each whole Warrant issued under this 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 the closing date.
All of the Common Shares and Warrants issued in connection with this financing will be subject to a statutory four-month hold period in accordance with applicable securities laws. The TSX Venture Exchange has conditionally approved this private placement.
Closing of this private placement is expected to occur in one or more tranches. To date, the Company has received signed subscription agreements from investors for an aggregate of 18,000,000 Units at a total subscription price of C$900,000.
The proceeds raised under this financing are expected to be used for the following purposes:
• To support the Company’s current franchise program;
• To expand and upgrade the Company’s coffee roasting facility in preparation for SPoT’s growing distribution of coffee to retailers and franchisees;
• To pursue the acquisition of an interest in food manufacturing opportunities in order to grow the Company’s revenue and profitability;
• To pay off a portion of the Company’s outstanding debentures; and
• For general working capital purposes.
