The Limestone Boat Company Announces Additional Default Under Outstanding Debentures and Manufacturing Resumption Update

COLLINGWOOD, ON / ACCESSWIRE / May 14, 2024 / The Limestone Boat Company Limited ("Limestone" or the "Company") (TSXV:BOAT) - Owner and builder of Limestone Boats - announces today that it has provided a notice of default under its trust indenture, dated May 14, 2021, (the "Indenture") between Limestone and TSX Trust Company, as trustee, (the "Indenture Trustee") in connection with the Company's failure to make the interest and principal payment due on the issued and outstanding debentures (the "Debentures") issued under the Indenture. The Company would also like to provide an update regarding business operation in its St Stephen, New Brunswick Manufacturing Facilities.

Foto: Accesswire

Additional Default Under Convertible Debenture Indenture

The Company announces that it has provided notice of an additional default to the Indenture Trustee under the Indenture, in connection with the Company's failure to make the interest and principal payment due under the Indenture on May 14, 2024. As previously disclosed, it is the intention of the Company to convert all of the outstanding principal due under the Debentures, plus accrued and unpaid interest, into common shares of Limestone at the conversion price of $0.071 which was approved at a meeting of the Debenture holders in July 2023.

Business Update

Limestone's New Brunswick management team of experienced boatbuilders, marine designers and engineers, and quality assurance specialists are also pleased to report that the resumption of manufacturing operations in its St. Stephen, NB facilities are progressing well and that the employees and plant management expect to see its first MY2025 production boats roll out the door to its dealers this summer.

The Company is also pleased to re-confirm that the exciting upgrades to existing tooling for the L200CC and L200R models, including improved quality and production efficiencies, and the new L290DC and L200R EV tooling, are progressing well and align with the Company's production plans.

Throughout the suspension of manufacturing operations, the Company's dealer partners have remained supportive with over a dozen additional dealers having expressed interest in the Limestone model lineup and Limestone's outboard power configurations as capacity increases in the months ahead.

The Limestone board and management would like to once again thank all stakeholders for their continued support of the Company's reorganization. Management and the Board of Directors of Limestone also wish to reaffirm their commitment to enhance shareholder value.