TORONTO, Sept. 23, 2021 /CNW/ - SPOT COFFEE
(CANADA) LTD (TSXV:
SPP) ("SPoT" or the "Company") is pleased to provide
this update on financial and operational matters.
Q2 Financial Highlights
The Company's net income for the three-month period ending
June 30, 2021, including income
purely from operations as well as other income, was $694,734. Furthermore, the Company achieved a
positive EBITDA of $1,134,999.
Other key highlights from the Company's financial statements for
the 6-month period ending June 30,
2021 include:
- The working capital of the Company has risen by $1,751,764 since December
31, 2020, mainly due to the closing of the Company's
non-brokered private placement, which provided SPoT with
$455,030 in equity financing as
previously announced in its news release of May 14, 2021. Furthermore, the Company's receipt
of $940,137 (US $758,542) from the US Small Business
Administration under its Restaurant Revitalization Fund (RRF)
program also contributed to the rise in its working capital. The
Company anticipates further funding under the RRF program in
accordance with its pending application if the ENTRÉE Act, which
provides for a US $60 billion
replenishment of the RRF, passes.
- The Company's liabilities have decreased by $1,374,675.
- In the 6-month period ending June 30,
2021, as compared to the same period in 2020, initial
efforts by SPoT's management to reduce operating costs as part of
the Company's drive to control spending and allocate its resources
more efficiently, have resulted in a total savings of $129,504.
- Subsequent to June 30, 2021, the
Company received confirmation of loan forgiveness of $792,855 (US $639,709) from the US Small Business
Administration under the Paycheck Protection Program, which was
first reported by the Company in its news release on April 21, 2020.
- The Company's accounts payable and accrued liabilities
decreased by $626,146 as of
December 31, 2020 to $1,508,352 as of June 30,
2021.
2021 Operational Highlights
In 2021, Company's management continued implementation,
notwithstanding COVID-19 limitations and challenges, of service
improvements, menu optimization, quality assurance, procurement,
marketing, quality control inspections and online operations.
SPoT's management also improved its Toast point-of-sale system with
an enterprise expansion that includes a loyalty program and kitchen
order display screens. In the last 18 months, SPoT's management has
also responded to COVID-19 by implementing and maintaining rigorous
operating policies and procedures in accordance with the
recommendations of New York State
and the Center for Disease Control and Prevention to protect the
health and safety of the Company's employees and guests.
Since the onset of COVID-19 pandemic in early 2020 until today,
the Company continued to grow with the opening of the following
SPoT cafés:
- 1 Express café in Tops Elmwood supermarket in July of 2020,
which is the fifth express café in Tops supermarkets within the
greater Buffalo area.
- 1 Neighborhood café franchise in the city of Niagara Falls, New York in early August of
2020.
- 1 Neighborhood café franchise in the town of North Tonawanda, NY on February 15, 2021. Mr. Ralph Dailey, franchisee of SPoT Coffee North
Tonawanda café, has since decided to re-focus on his primary real
estate development business and has entered into an agreement to
sell his business and assets in SPoT North Tonawanda café to SPoT
Coffee International, Inc. ("SPoT International"), a fully owned
subsidiary of SPoT Coffee (Canada)
Ltd., for the total consideration of US $350,000. The agreement further provides payment
by Spot Coffee International of the Purchase Price in 36 equal
monthly instalments. In doing so, Mr. Dailey has terminated his
franchise agreement with SPoT International. which is now the owner
and operator of the SPoT Coffee North Tonawanda café.
Appointment of Brandon Sterner as
President and COO of SPoT International
SPoT is also pleased to announce that Mr. Brandon Sterner has been appointed as President
of SPoT International, and that he will continue to serve as Chief
Operating Officer as well. Mr. Sterner, a graduate of the
Niagara University College of
Hospitality and Tourism Management with a BS in Food and Beverage
Operations, excelled at overseeing day-to-day administrative and
operational functions. He was selected for his new role based on
his qualifications, experience, and performance. He brings strong
analytical, managerial, communication, and leadership skills to the
Buffalo management team.
Mr. Sterner has been instrumental in safeguarding the health and
wellbeing of employees and customers during the COVID-19 pandemic
by authoring SPoT's Coronavirus response plan and ensuring its
proper implementation and ongoing effectiveness.
About SPoT Coffee
SPoT Coffee has been designing, building and operating
company-owned and franchise community cafés in the northeastern
United States for over 25 years.
SPoT's cafés provide their 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 the 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 resellers such as
universities and hospitals.
We seek Safe Harbor.
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.
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.