Lease of SPoT Concord Place Cafe Terminated
TORONTO, ONTARIO--(Marketwired - Sept. 23, 2014) - SPOT COFFEE (CANADA) LTD. (TSX VENTURE:SPP) ("SPoT" or the "Company") report
that Concord Adex Developments Corp ("Concord Adex") has decided
yesterday to terminate the lease of Hot Spot (Concord Place) Inc. ("Spot
Concord Place") which owns and operates a Spot Coffee café on 333
Bremner Blvd., Toronto. Concord Adex claims that termination of the
lease has been by reasons of breaches of covenants in the lease.
On November 1, 2012, Concord Adex unexpectedly invoiced Spot Concord Place the sum of $138,951.70 which included HST. Concord Adex claimed that this amount was for additional rent that was not previously invoiced by Concord Adex for the period of the past 5 years, i.e., 2007 and up to November 1, 2012. The lease provides that additional rent should be invoiced by the landlord in a timely fashion at the end of each year of the lease. Such timely invoicing especially of drastic changes in the fixed operating costs of the café would have allowed Spot Concord Place the time and opportunity to calculate and adjust its selling prices accordingly. However, in order to preserve its good relationship with Concord Adex, management of Spot Concord Place elected to avoid entry into legal disputes for a ruling on this matter and chose instead to amicably negotiate a settlement of these untimely and sudden additional rents. On September 16, 2013, Concord Adex and Spot Concord Place entered into a settlement agreement which provided that Spot Concord Place pays Concord Adex the total sum of $90,400 including HST instead of $138,951.70. The settlement agreement further provided that Spot Concord Place pays the $90,400 in instalments starting with the payment of $22,600 including HST on September 30, 2013 and the monthly payment of $5,650 including HST thereafter until September 30, 2014. All these payments have been paid by Spot Concord Place to Concord Adex. The only remaining payment is the last one due September 30, 2014.
Last month, Spot Concord Place advised Concord Adex that it would be late in paying rent catch-up payments as per a schedule of lease payments that was mutually agreed upon. Spot Concord Place also advised that the delay was due to the financial strain caused by the payments of the substantial additional rent that was levied against Spot Concord Place for the years 2007 to 2012 and that was only invoiced in late 2012. Despite best attempts by Spot Concord Place to rectify the breach by the end of November of this year, Concord Adex insisted on the immediate full payment not only of the rent arrears but the additional amount of $48,551.70 ($138,951.70 - $90,400) for additional rent that was discounted in the settlement agreement that they cited as being terminated due to the breach in the covenant of the lease. This final and uncompromising position taken by Concord Adex since the entry of its lease with Spot Concord Place on May 25, 2006, led to the unfortunate termination of the Spot Concord Place lease.
Spot Concord Place is very proud that it was able to serve the community of Spot Concord Place for the last nine years despite the challenging start-up years when it was building up the business. All the staff and employees of Spot Concord Place convey to each and every customer of Spot Concord Place their sincere feelings of sadness for not being able to serve them any longer and to enjoy the contented look on their faces with the service and quality food and beverages of Spot Concord Place. They will miss you all.
About SPoT Coffee
SPoT Coffee trades on the TSX Venture Exchange under the symbol SPP. SPoT designs, builds and operates community oriented cafés that provide its customers with the highest quality service, signature made-to-order meals and the world's finest in-house roasted gourmet coffee. Each SPoT café is distinctively designed to suit their local neighbourhoods, creating warm and friendly gathering places for the community. SPoT's commercial business focuses on retail stores, business accounts and third party resellers such as universities and hospitals.
Forward Looking Statements
Except for statements of historical fact relating to the Corporation, certain information contained herein constitutes forward-looking statements. 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. Except as required by applicable securities requirements, the Corporation 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.
On November 1, 2012, Concord Adex unexpectedly invoiced Spot Concord Place the sum of $138,951.70 which included HST. Concord Adex claimed that this amount was for additional rent that was not previously invoiced by Concord Adex for the period of the past 5 years, i.e., 2007 and up to November 1, 2012. The lease provides that additional rent should be invoiced by the landlord in a timely fashion at the end of each year of the lease. Such timely invoicing especially of drastic changes in the fixed operating costs of the café would have allowed Spot Concord Place the time and opportunity to calculate and adjust its selling prices accordingly. However, in order to preserve its good relationship with Concord Adex, management of Spot Concord Place elected to avoid entry into legal disputes for a ruling on this matter and chose instead to amicably negotiate a settlement of these untimely and sudden additional rents. On September 16, 2013, Concord Adex and Spot Concord Place entered into a settlement agreement which provided that Spot Concord Place pays Concord Adex the total sum of $90,400 including HST instead of $138,951.70. The settlement agreement further provided that Spot Concord Place pays the $90,400 in instalments starting with the payment of $22,600 including HST on September 30, 2013 and the monthly payment of $5,650 including HST thereafter until September 30, 2014. All these payments have been paid by Spot Concord Place to Concord Adex. The only remaining payment is the last one due September 30, 2014.
Last month, Spot Concord Place advised Concord Adex that it would be late in paying rent catch-up payments as per a schedule of lease payments that was mutually agreed upon. Spot Concord Place also advised that the delay was due to the financial strain caused by the payments of the substantial additional rent that was levied against Spot Concord Place for the years 2007 to 2012 and that was only invoiced in late 2012. Despite best attempts by Spot Concord Place to rectify the breach by the end of November of this year, Concord Adex insisted on the immediate full payment not only of the rent arrears but the additional amount of $48,551.70 ($138,951.70 - $90,400) for additional rent that was discounted in the settlement agreement that they cited as being terminated due to the breach in the covenant of the lease. This final and uncompromising position taken by Concord Adex since the entry of its lease with Spot Concord Place on May 25, 2006, led to the unfortunate termination of the Spot Concord Place lease.
Spot Concord Place is very proud that it was able to serve the community of Spot Concord Place for the last nine years despite the challenging start-up years when it was building up the business. All the staff and employees of Spot Concord Place convey to each and every customer of Spot Concord Place their sincere feelings of sadness for not being able to serve them any longer and to enjoy the contented look on their faces with the service and quality food and beverages of Spot Concord Place. They will miss you all.
About SPoT Coffee
SPoT Coffee trades on the TSX Venture Exchange under the symbol SPP. SPoT designs, builds and operates community oriented cafés that provide its customers with the highest quality service, signature made-to-order meals and the world's finest in-house roasted gourmet coffee. Each SPoT café is distinctively designed to suit their local neighbourhoods, creating warm and friendly gathering places for the community. SPoT's commercial business focuses on retail stores, business accounts and third party resellers such as universities and hospitals.
Forward Looking Statements
Except for statements of historical fact relating to the Corporation, certain information contained herein constitutes forward-looking statements. 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. Except as required by applicable securities requirements, the Corporation 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.
Contact Information
David Freeman
Corporate Development
(416) 368-2220 ext 270
dfreeman@spotcoffee.com
Anton Ayoub
CEO
(416) 368-2220
aayoub@spotcoffee.com
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