SPoT Coffee Confirms Delay in Filing Annual Financial Statement and MD&A and Expects Issuance of Cease Trade Order

TORONTO, June 15, 2020 /CNW/ - SPOT COFFEE (CANADA) LTD. (TSXV: SPP) ("SPoT" or the "Company") announces that further to its news release dated June 12, 2020, the Company will be delayed in filing its audited annual financial statements for the year ended December 31, 2019, the related management's discussion and analysis and certificates of its CEO and CFO (collectively, the "Required Filings") with Canadian securities regulators until after the prescribed filing deadline. The additional time during COVID-19 is required to permit the Company and its auditors to complete the work and enquiries required in connection with the audit of the Company's 2019 financial statements. The Company and its advisors are working diligently to complete such work and the Company intends to make the Required Filings as soon as possible.

In connection with this delay, the Company expects that the Ontario Securities Commission ("OSC") will be issuing a failure-to-file cease trade order ("FFCTO") against the Company, rather than the management cease trade order ("MCTO") originally sought by the Company as announced on June 12, 2020. Despite the exercise of reasonable efforts by the Company in the circumstances, the Company has been advised by the OSC that its application for a MCTO was not successful and that the OSC was of the view that the Company's circumstances did not constitute a "rare situation" for the exercise of the OSC's discretion in this regard. When issued, the Company expects the FFCTO to affect trading in all securities of the Company and to remain in effect until such time as the Company has made the Required Filings. Once the Required Filings are made within 90 days of the date of the FFCTO, the required filings will constitute the Company's application to have the FFCTO revoked. The Company will issue a further news release when the Required Filings have been made.

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.

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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.

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