TORONTO, Ontario, Canada – SPOT COFFEE (CANADA) LTD. (TSX VENTURE:SPP) (“SPoT” or the “Company”) is pleased to announce a non-brokered private placement offering.
SPoT Coffee trades on the TSX Venture Exchange under the symbol SPP. SPoT designs, builds, operates and franchises community oriented cafés and express cafés in New York State.
The company is offering up to 8,250,000 units (each a “Unit”) at a price of C$0.06 per Unit for aggregate gross proceeds of up to C$495,000.
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 $0.08 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.
Closing of this private placement is expected to occur in one or more tranches and is subject to receipt of approval from the TSX Venture Exchange.
The proceeds raised under this financing are expected to be used for the following purposes:
(i) To support the Company’s current franchise program as it expands into Rochester, NY;
(ii) To pay off a portion of the principal of the Company’s debt; and
(iii) For general working capital purposes
