TORONTO,
June 14, 2017
/CNW/ - SPOT COFFEE (CANADA) LTD. (TSX-V: SPP) ("SPoT" or the
"Company") is pleased to provide an update of its
financial and current operations including franchise
activities.
Franchise Development Progress
As announced by the Company in its news release of
June 1, 2017, SPoT, through a wholly
owned subsidiary, SPoT Coffee West Hartford, LLC, entered into a
lease agreement with SOF-IX Blueback Square Holdings, LP to lease
premises municipally known as 69 Memorial Road in West Hartford, Connecticut, comprising 3,000
sq. ft. of floor space. The Company further retained the
architectural firm of L'ARC to provide architectural and interior
design services, mechanical and electrical plans, and to secure the
necessary approvals and building permits to commence the
development of the SPoT West Hartford café. As has been planned by
SPoT and its franchisee, Parisco Cafés, LLC, ("PCL"), the Company
expects to complete the development of the SPoT West Hartford café
in the third quarter of 2017. SPoT is now working closely with its
real estate agents to find a suitable location for PCL's second
SPoT café in Connecticut.
Last week, the Planning Board of the Town of Clarence
approved the long-awaited site plan application of the Company to
build a drive-thru to service customers of the SPoT Transit café,
located in the commercial neighbourhood of Transit Road in Buffalo.
Accordingly, the Company is confident in obtaining the building
permit for the proposed drive-thru this month. For more information
concerning this event, please refer to the Company's news release
of December 19, 2016.
The development of SPoT Coffee Express café in Waterfront
Village announced by the Company in its news release of
April 18, 2017 has been rapidly
progressing and has now reached at a stage where it will be ready
to open for business in the middle of next month.
On May 16, 2017, and at the
invitation of Roswell Park Cancer Institute of Buffalo ("Roswell
Park"), the Company submitted a proposal, under the terms of
Roswell Park's Request for Proposal - Formal Bid # 17-48 Lobby Food
Service, to build and operate a SPoT Coffee Express café in the
hospital's main lobby. SPoT has been negotiating with several
serious franchisees who have expressed their interest in owning and
operating this express café. The Company will report on the
progress of this opportunity once it hears back from Roswell Park.
For more information on this event, please refer to the Company's
news release of April 12,
2017.
The Company signed a franchise deposit agreement with a
franchisee who is bidding for and negotiating a lease within the
West Seneca Community Center and Library of Buffalo where he
intends to build, own and operate a SPoT Coffee Express café. The
Community Center and Library are presently under construction,
which is scheduled to be completed in early spring of 2018. The
franchisee plans to start the development of their SPoT Coffee
Express café in early 2018, and anticipate being ready to open at
the same time the construction of the Community Center and Library
is completed in early spring of 2018.
SPoT signed a deposit agreement with a franchisee to
develop a SPoT Coffee Express café in the newly renovated Larkin
Center of Commerce ("LCC") of Buffalo. Accordingly, the Company is
presently negotiating to lease 1,500 sq. ft. in the main lobby area
with direct access to the street for the planned Spot Coffee
Express café. LCC is comprised of 1.3 million sq. ft. in 12
adjoining buildings on 32 acres under one roof. The LCC is
New York's largest mixed-use
facility. It contains office space, retail space, manufacturing
space and warehouse space in Buffalo's redeveloped commercial,
cultural and historic Larkin District. The Company expects to
finalize the lease with LCC once the plans for the engineering work
in the LCC lobby are delivered.
The Company is now finalizing franchise agreements with 2
serious franchisees for an additional full SPoT café and another
new SPoT Coffee Express café. Two locations have been identified
for leasing and are being studied as to their suitability for SPoT.
The Company will be reporting shortly on the progress of these two
franchise opportunities and their locations in the Buffalo
area.
New Multi-Unit Franchise and Territories
Consistent with the Company's new multi-unit franchise
policy in response to franchisees who have indicated interest in
purchasing the rights to develop and own no more than five
SPoT cafés in an exclusive territory, the Company has started
negotiations with prospective franchisees in the Washington, DC, Virginia and Mid-Atlantic areas. In a
multi-unit operation, SPoT requires a franchisee to work in the
daily operations of a single main café, and to rely on experienced
and well-trained general managers and staff to oversee the daily
operations of the other SPoT cafés. SPoT will be hosting in Buffalo
next month multi-unit potential franchisees who will be touring the
Company's cafés, coffee roasting and central kitchen facilities and
negotiating multi-unit franchise agreements as
well.
Shares for Debt Issued
As reported by the Company in its news releases of
May 8, 14 and 24, 2017 respectively,
SPoT issued a total of 833,333 common shares to two of its
creditors at the price of $0.18 per
share in full settlement of their combined debt of $150,000.
2018 Outlook
SPoT's business plan, which considers the strong demand
for SPoT franchises in the State of New
York and neighboring states, foresees the full development
and operation of approximately thirty-five (35) SPoT full cafés and
Spot Express cafés before the end of 2018. This represents the
minimum growth of nineteen (19) new cafés to the sixteen (16)
SPoT cafés currently open for business. The Company's management
will keep SPoT shareholders informed as these new cafés are fully
developed and commence their operations. The anticipated number of
SPoT cafés in the Company's business plan is a moving target and
may well be accelerated by participation by multi-unit
franchises and the opening of the market of Connecticut and adjacent states for SPoT's
franchises.
About SPoT Coffee
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. SPoT's community cafés provide its customers
with the highest quality service, signature made-to-order meals and
award-winning micro-roasted coffee. Each SPoT café is distinctively
designed to suit its local neighbourhood, creating a warm and
friendly gathering place for the community. SPoT's commercial
business focuses on the sale of roasted coffee beans to food
service and grocery chains, business offices and third party
resellers such as universities and hospitals.
Forward Looking Statements
Except for statements of historical fact relating to
the Company, certain information contained herein constitutes
forward-looking statements. In particular, forward-looking
information in this press release includes, but is not limited to,
the potential use of proceeds of the financing that is the subject
of this release. Although we believe that the expectations
reflected in the forward-looking information are reasonable, there
can be no assurance that such expectations will prove to be
correct. We cannot guarantee future results, performance or
achievements. Consequently, there is no representation that the
actual results achieved will be the same, in whole or in part, as
those set out in the forward-looking information.
Forward-looking statements are based on the opinions
and estimates of management at the date the statements are made,
and are subject to a variety of risks and uncertainties and other
factors that could cause actual events or results to differ
materially from those projected in the forward-looking statements.
The forward-looking information contained in this news release is
expressly qualified by this cautionary statement. Except as
required by applicable securities laws, the Company undertakes no
obligation to update forward-looking statements if circumstances or
management's estimates or opinions should change. The reader is
cautioned not to place undue reliance on forward-looking
statements.
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of the release.
SOURCE Spot Coffee (Canada)
Ltd.