TORONTO, Ontario, Canada – SPoT Coffee designs, builds, operates and franchises community oriented cafes and express cafes in New York State. SPoT’s community cafes provide its customers with the highest quality service, signature made-to-order meals and award winning micro-roasted coffee.
Each SPoT cafe is distinctively designed to suit its local neighbourhood, creating a warm and friendly gathering place for the community.
The company announces the closing of the first tranche of its previously announced non-brokered private placement offering of up to 42,500,000 units (each a “Unit”) at a price of C$0.05 per Unit.
An aggregate of 5,500,000 Units have been issued for aggregate gross proceeds of $275,000. Each Unit consists of one common share of SPoT (a “Common Share”) and one-half of one common share purchase warrant (a “Warrant”).
Each whole Warrant entitles the holder to acquire one additional Common Share at a price of $0.075 for a period of 4 years. 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, which will expire on April 15, 2016.
Notwithstanding the completion of this first tranche closing, the balance of the Offering (for aggregate gross proceeds of up to $2,150,000) remains ongoing, with additional signed subscription agreements for a further 10,000,000 Units (for gross proceeds of $500,000) having been received and closing thereof pending arrival of funding.
The proceeds raised under this financing are expected to be used for the following purposes:
i. To support the Company’s current franchise program;
ii. To expand and upgrade the Company’s coffee roasting facility in preparation for SPoT’s growing distribution of coffee to retailers and franchisees;
iii. To pursue the acquisition of an interest in food manufacturing opportunities in order to grow the Company’s revenue and profitability;
iv. To pay off a portion of the Company’s outstanding debentures; and
v. For general working capital purposes.
