COLLINGWOOD, ON / ACCESSWIRE / July 19, 2023 / The Limestone Boat Company Limited ("Limestone" or the "Company") (TSXV:BOAT) - is pleased to announce that the Company received approval from the holders of its 10% convertible subordinated debentures due May 14, 2024 (the "Convertible Debentures") at a meeting of debentureholders held on July 18th, of certain amendments to the terms of the Convertible Debentures which, among other things, provide the Company with the right to convert the outstanding principal and interest under the Convertible Debentures into common shares of the Company ("Common Shares") at a conversion price of $0.071 per Common Share. The amendments were unanimously approved by all debentureholders represented at the meeting.
Recommencement of Manufacturing Operations
In addition to the foregoing, the Company also wishes to provide an update on the status of the proposed commencement manufacturing operations in New Brunswick, Canada. Based on management's current expectations, it is anticipated that manufacturing operations will recommence in Q1 2024, with a particular focus on producing the Limestone L200 Centre Console and Runabout models, along with the Company's new L290 Dual Console model. Initial shipments of the Company's L270 Dual Console model, presently in development, are also expected to follow in FY 2025, furher expanding the Company's outboard offering.
"Given the unanimous approval by all debentureholders represented at the meeting July 18th, the Company will now turn its focus to executing its plan to ensure the successful recommencement of manufacturing in the Maritimes in Q1 2024 following the onboarding and employee training phase commencing this fall. The strategy afoot is expected to position the Company well to start satisfying the continued backlog in market demand for Limestone boats, while also leading to improved production efficiency, consistent product quality, throughput, revenue, and profitability in the coming years", said Limestone CEO Scott Hanson
With the anticipated recommencement of manufacturing operations in Q1 2024, the Company also plans to establish temporary operating facilities for the purposes of onboarding and training its manufacturing staff in collaboration with the NBCC, St. Andrews Campus to be held at the College and the Company's transitionary manufacturing facilities in the Port of Bayside complex. The Company also intends to move forward with executing a commercial lease associated with the construction of its 100,000 square foot purpose-built, state-of-the-art closed molding and vacuum infusion boatbuilding facility located in Bayside, New Brunswick near the Port of Bayside Industrial Park. The Company expects the construction of this new facility to be completed in Q3 2024
The Company also plans to make tooling modifications to its L200R to accommodate Vision Marine Technologies' E-Motion fully integrated, high-performance electric powertrain system and outboard motor. The Company has re-confirmed its order for 25 electric powertrain engine systems and expects that initial shipments will commence in FY 2025. Limestone will also be partnering with Vision Marine to provide EV training expertise as part of the Company's formal onboarding and training program in collaboration with New Brunswick Community College (the "NBCC").
Alex Mongeon, co-founder and CEO of Vision Marine, stated, "We at Vision Marine express profound enthusiasm for this contract and collaboration with Limestone. Supporting Limestone and boat manufactures lies at the core of the company. As CEO, I am wholeheartedly committed to empowering our partners in the marine industry with cutting-edge electric propulsion solutions. Our top priority is to collaborate closely with boat manufactures, including Limestone, driving sustainable practices and fostering innovation, as we collectively shape a greener, more promising future for boating enthusiasts worldwide."
The Company continues to have strong dealer support throughout the Northeaster US, including New England, the Canadian and US Great Lakes region, and the mid-Atlantic states. The Company believes it can effectively service these markets from Atlantic Canada.
In connection with the relocation of its manufacturing operations to New Brunswick, Canada, Limestone anticipates participating in certain Provincial and Federal development support initiatives including those offered by Opportunities New Brunswick and the Atlantic Canada Opportunities Agency.
About The Limestone Boat Company Limited
The Limestone Boat Company Limited- owner and builder of Limestone® Boats - is publicly traded on the TSX Venture Exchange under the ticker symbol "BOAT". They are headquartered in Collingwood, Ontario.
For more information, please contact:
Bill Mitoulas | Investor Relations
800-720-2395
bill@limestoneboats.com
www.limestoneboatcompany.com
Scott Hanson | CEO of The Limestone Boat Company Limited
800-720-2395
info@limestoneboatcompany.com
Cautionary Note Regarding Forward-Looking Statements
Certain statements contained in this press release, and other publicly available documents including the documents referenced herein, constitute forward-looking information or forward-looking statements (collectively, "forward-looking information)". These statements relate to future events or future performance. The use of any of the words "anticipate", "believe", "could" "should", "would", "estimate", "expect", "forecast", "indicate", "intend", "likely, "may", "plan", "potential", "project", "outlook", "seek", "target", "trend" or "will" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the parties' current belief or assumptions as to the outcome and timing of such future events. Examples of such forward-looking information include, without limitation, the timing and ability of the Company to recommence manufacturing operations (if at all); the Company's projections regarding future manufacturing operations; the timing of initial shipments of the Company's L270 Dual Console Models; management's expectations regarding strong dealer support; the Company's ability to effectively service certain markets from Atlantic Canada; the Company's participation in certain Provincial and Federal development support initiatives; the timing and ability (if at all) of the Company to establish temporary operating facilities; the Company's ability to finalize and enter into (if at all) a commercial lease in respect of its proposed new boatbuilding facility; the timing for the construction of the new boatbuilding facility; the proposed terms and timing of the proposed Private Placement; and the Company's ability to obtain the TSXV's approval of the Private Placement. Actual future results may differ materially. The Company is subject to a number of risks relating to integration and go-forward operations, certain of which are more particularly described in the Company's public filings available on SEDAR including, without limitation, the filing statement filed by the Company on February 23, 2021, and the Management's Discussion and Analysis for the three months ended March 31, 2023. The forward-looking information contained in this release is made as of the date hereof and the parties are not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein.
Many factors could cause actual results, level of activity, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking information. All the forward-looking information made in this press release is qualified by these cautionary statements and other cautionary statements or factors in this press release. There can be no assurance that the actual results or developments will be realized or, even if substantially realized, will have the expected consequences to, or effects on, the Company. Unless required by applicable securities law, the Company does not intend and does not assume any obligation to update this forward-looking information.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release.
SOURCE: The Limestone Boat Company Limited
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