TORONTO, June 28, 2019 /CNW/ - SPOT COFFEE (CANADA) LTD. (TSX-V: SPP) ("SPoT" or the "Company") is pleased to provide the following financial and franchise update.
SPoT is pleased to announce that the underwriters of KeyBank NA have approved the following credit facilities for the Company:
- US $300,000 (Canadian $400,000) Flex Line of Credit facility that is revolving for 3 years after which time it will term out for 7-year term loan, and;
- An Evergreen Line of Credit Facility of US $200,000 (Canadian $265,000)
Ranked 412th on the Fortune 500 list, KeyBank NA is the 28th largest bank in the United States. It maintains 1,197 branches in 35 states.
Franchises Under Development
TOPS Markets, LLC
SPoT is pleased to report that on June 13, 2019, signed a franchise agreement with Tops Markets, LLC ("Tops") to develop a SPoT Express in the Tops supermarket located at 3980 Maple Road, Amherst, NY. Tops will immediately start the development of this SPoT Express, which is replacing Tim Hortons in this renovated Tops supermarket location. The Company hopes that this first SPoT Express franchise will be the first of many more as Tops renovates its supermarkets.
"As a homegrown company in the hospitality industry, SPoT is very proud to partner with Tops Markets, a prominent homegrown company, with whom we share the strong commitment of serving our neighborhoods," said Dan Hensley, Chief Operating Officer of SPoT. Tops Friendly Markets was founded in 1962 in Niagara Falls, New York. Tops Markets, LLC is headquartered in Williamsville, NY and operates 159 full-service supermarkets with five additional franchise stores and is the largest private, for-profit employer in Western New York. A Spokesperson for Tops added, "As a leading grocery retailer in New York, northern Pennsylvania, and western Vermont, and with the support of 14,000 associates, our core mission is to help our communities flourish."
North Tonawanda, NY
On May 17, 2019, SPoT signed a franchise agreement with Destination WNY, LLC to build a new 2,500 sq. ft. SPoT café in the renovated and retrofitted 130-year building which was once home to the North Tonawanda History Museum on 54 Webster Street, directly across from the historic Riviera Theatre. SPoT North Tonawanda café will keep the original brick walls that have been covered for more than a century.
"The area carries a lot of history and has been developing in a remarkable and sustainable way," Anton Ayoub, CEO of SPoT said. "Webster Street, with its vibrancy, is a natural fit for SPoT Coffee's concept of a true community café, where residents from all walks of life can come and enjoy a coffee and a meal with their friends in a relaxed atmosphere."
This café is scheduled to open in the third quarter of this year.
Niagara Falls, NY
The Company entered into a franchise agreement with Niagara Club, LLC to develop a 3,500 sq. ft. SPoT Niagara Falls café on 24 Buffalo Avenue in Niagara Falls, NY. The café will overlook the Niagara River and will be located at the entrance of the Niagara Falls State Park, a state park in the City of Niagara Falls in Niagara County, New York, United States. The park, recognized as the oldest state park in the United States, contains the American Falls, the Bridal Veil Falls, and a portion of the Horseshoe Falls.
This café is also scheduled to open before the end of this year.
Town of Victor, NY
The Company has entered into a franchise deposit agreement with a franchisee in the Town of Victor, NY. The final franchise agreement is pending loan approval by the franchisee's bank to finance part of SPoT Victor's development costs.
Niagara Falls Blvd., Tonawanda
The Company is finalizing negotiations with a franchisee to build a SPoT Express in a new upscale development around a current animal hospital, Pet Resort and Play Area in the town of Tonawanda, NY.
Finally, the Company has commenced negotiations with a NY university to develop a SPoT café within its campus.
We will report on the development of these prospective and other new franchise prospects as they are finalized with signed franchise agreements.
Forward Looking Statements
Except for statements of historical fact relating to the Company, certain information contained herein constitutes forward-looking statements. 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.
SOURCE Spot Coffee (Canada) Ltd.
For further information: Anton Ayoub, President & CEO, (416) 368-2220 EXT 228, [email protected]