COLLINGWOOD, ON / ACCESSWIRE / July 31, 2023 / The Limestone Boat Company Limited ("Limestone" or the "Company") (TSXV: BOAT) - owner and builder of Limestone® Boats - today reports its financial results for the 15 months ended March 31, 2023. All dollar amounts are in Canadian dollars unless otherwise noted.
The Company's Consolidated Financial Statements and Management Discussion and Analysis for the 15 months ended March 31, 2023, are available at www.sedar.com or on the Company's website at www.limestoneboatcompany.com.
Business Outlook:
Subsequent to the suspension of manufacturing operations in October 2022, the voluntary bankruptcy of Ebbtide in January 2023, and the ongoing restructuring of the Company's balance sheet, the Company evaluated opportunities to resume manufacturing of Limestone branded boats in Canada. After exploring options in both Ontario and New Brunswick, management and the Board of Directors of the Company agreed to pursue opportunities in New Brunswick due to the financial benefits associated with the relocation, the proximity to the Company's primary markets in the Northeastern U.S., and the opportunity to construct a purpose built 100,000 sq. ft. manufacturing facility in Bayside, New Brunswick.
The plan incorporates an anticipated equity raise (see Private Placement Update below) and certain Provincial and Federal development support initiatives, that will provide the Company the opportunity to attract and train a skilled labour force as well as procuring manufacturing equipment. This will ensure the Company can maximize the purpose-built facility both in terms of efficiency and throughput while also ensuring the output of quality products expected from Limestone, and career growth opportunities for employees. Ongoing business performance and success, however, is not predicated on continued support from Provincial or Federal organizations.
The Company is also negotiating agreements to establish transitionary operating facilities for the purposes of onboarding and training its manufacturing staff in collaboration with the New Brunswick Community College ("NBCC"), St. Andrews Campus, based on the creation of a 12-week training program with the input and assistance of leading industry associations, vendor partners and experienced marine industry skills training experts.
Throughout the suspension of manufacturing operations, the Company's 10 Limestone dealers, with 25 locations, have remained supportive, and there are over a dozen additional dealers East of the Rockies that have expressed interest to take on the Limestone model lineup given current market dynamics, brand following and outboard power configurations.
Based on management's current expectations, the commencement of manufacturing operations in New Brunswick, Canada is expected during calendar year 2024. Upon commencement, the Company will 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 calendar year 2025, further expanding the Company's outboard offering.
Lastly, 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. 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 NBCC.
In summary, it is management's opinion that the strategy is expected to position the Company well to start satisfying the continued market demand for Limestone boats, while also leading to improved production efficiency, consistent product quality, throughput, revenue, and profitability in the coming years.
Private Placement Update:
Further to the Company's news releases dated June 20, 2023 and July 19, 2023, the Company is pleased to announce certain amendments to the terms of its previously announced non-brokered private placement. Having already obtained the approval of debenture holders in respect of certain amendments to the terms of the Company's outstanding 10% convertible subordinated debentures due May 14, 2024, the Company has decided to amend the terms of its private placement to issue common shares ("Common Shares") instead of subscription receipts (the "Offering").
Pursuant to the terms of the amended Offering, the Company proposes to issue up to 120,000,000 Common Shares at a price of $0.05 per Common Share for aggregate gross proceeds of up to $6,000,000. The Company intends to use the net proceeds of the Offering for general working capital purposes including repayment of certain existing indebtedness of the Company. The Offering is scheduled to close in tranches, subject to all applicable approvals including that of the TSX Venture Exchange (the "TSXV"), between July 31, 2023 and September 30, 2023.
Financial Highlights for the 3 and 15 months ended March 31, 2023:
- The Company generated revenues of $0.1m and $12.2m, respectively, for the 3 and 15 months ended March 31, 2023.
- The Company incurred operating expenses of $2.1m and $12.5m, respectively, during the 3 and 15 months ended March 31, 2023.
- The Company incurred an operating loss of and $2.3m and $12.9m respectively, during the 3 and 15 months ended March 31, 2023.
- As of March 31, 2023, the Company had outstanding 119,665,940 common shares, 6,323,172 common share purchase warrants and 5,895,000 stock options.
- There are several risk factors facing the Company including but not limited to financing risk, liquidity risk, market risk and the residual impact of Covid-19 on the operations and ongoing supply chain disruption as more fully described in the Company's Management Discussion and Analysis for the 15 months ended March 31, 2023 (the "MD&A") available on the Company's profile on www.sedar.com or on the Company's website at www.limestoneboats.com.
The Limestone Board and management would also like to thank all stakeholders for their continued strong support with respect to the reorganization, and 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
[email protected]
www.limestoneboatcompany.com
Scott Hanson | CEO of The Limestone Boat Company Limited
800-720-2395
[email protected]
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 Offering; 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; and the timing for the construction of the new boatbuilding facility; 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 and fifteen 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