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.
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.
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". The Company is headquartered in Collingwood, Ontario.
For more information, please contact:
Bill Mitoulas | Investor Relations
800-720-2395
bill@limestoneboats.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 production timeline for its first MY2025 boats; the significance of additional dealer interest in the Company's line of products; management's expectations regarding strong dealer support; and the proposed conversion of the Company's issued and outstanding Debentures into common shares of Limestone. 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+ (). 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 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 this news release.
SOURCE: The Limestone Boat Company Limited
