COLLINGWOOD, ON / ACCESSWIRE / February 29, 2024 / The Limestone Boat Company Limited ("Limestone" or the "Company") (TSXV:BOAT) - owner and builder of Limestone® Boats - today reports its financial results for the three and nine months ended December 31, 2023. All dollar amounts are in Canadian dollars unless otherwise noted.
Copies of the Company's interim financial statements and management discussion and analysis for the three and nine months ended December 31, 2023 are available on SEDAR+ (www.sedarplus.ca) under the Company's profile.
Business Update
The Company continues to advance its various work streams, including the restructuring of its balance sheet, the previously announced Royalty financing and the relocation of its manufacturing operations to Southwest New Brunswick.
Specifically, further to the press release dated January 15, 2023, the Company is pleased to confirm that the previously announced execution of a non-binding term sheet, and initial advances with Pathfinder Investments, NB Inc. ("Pathfinder"), a privately owned New Brunswick investment Company, expected to provide up to $5 million of financing in return for a gross revenue royalty right and certain common share purchase warrants to be determined upon negotiation of a definitive agreement (the "Royalty Agreement"), is proceeding as expected, subject to execution of the definitive agreement, the approval of the Board of Directors of the Company, and any applicable regulatory approvals including that of the TSX Venture Exchange.
The Company continues to advance the restart of operations in Southwest New Brunswick under the leadership of its resident CEO, an enhanced plant management team, including but not limited to its manager of engineering from a leading U.S. yacht builder, experienced serial production managers/boatbuilders, and a quality assurance manager from one of the worlds leading automotive manufacturers. The Company's 12-week employee training program is also progressing as expected, and the retrofitting of its new manufacturing facility in St. Stephen, New Brunswick is underway, putting the Company on course to see the resumption of serial production in summer 2024.
With respect to labour, the Company is pleased to report that its intensive employee training program which commenced in late November 2023 is progressing well, ensuring its teams are equipped with the unique boatbuilding skills and industry knowledge required to deliver the quality expected from Limestone. The training program is being delivered by experienced boatbuilders, and vendor partners and will utilize the most up-to-date infusion techniques, equipment, and engine technologies. Limestone intends to run two waves of the training program annually in partnership with the New Brunswick Community College over the next two to three years to meet growth projections, market demand, and facility expansion plans.
With regards to the retrofit of the Company's 33,000 sq. ft. manufacturing facility in St. Stephen, NB, work is progressing with exterior work completed prior to the winter season as well as the interior demolition. The buildout and installation of equipment by the Company's New Brunswick engineering and construction partners and staff is expected to continue throughout the spring-summer as funding is completed, thus putting the Company in a position to commence serial production in the upcoming 2025 Model Year commencing in June 2024.
The Company is also pleased to confirm that exciting upgrades to existing tooling for the L200R / L200CC models, which will improve quality and production efficiencies, along with its NEW L290DC and L200R EV are nearing completion, aligning with the timeline to re-commence production.
Throughout the suspension of manufacturing operations, the Company's dealer partners have remained supportive, and there are over a dozen additional dealers that have expressed interest in the Limestone model lineup given current market dynamics, brand following, and Limestone's outboard power configurations.
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.
For a more detailed description of the Company's ongoing operations, please see the Company's management discussion and analysis for Q3 2024 available on SEDAR+ (www.sedarplus.ca) under the Company's profile.
Convertible Debenture Indenture
As previously disclosed, the Company reiterates that it intends 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 special meeting of the debenture holders July 18, 2023 upon the closing/execution of a definitive agreement with Pathfinder expected in the coming month.
Q3 2024 Financial Highlights
- The Company incurred an operating loss of $1,616,653 during the three months ended December 31, 2023.
- Included in the operating loss were non-cash costs in the amount of $1,017,458. Such costs relate to, among other things, amortization and depreciation, accrued interest expense, accretion expense, amortization of financing fees and stock-based compensation.
- As at December 31, 2023, the Company had 119,665,940 common shares and 5,895,000 stock options outstanding.
- There are several risk factors facing the Company including, but not limited to, financing risks, liquidity risks, market risks and supply chain risks, as more fully described in the Company's annual management discussion and analysis for the 15-months ended March 31, 2023 (the "MD&A"), a copy of which is available on SEDAR+ (www.sedarplus.ca) under the Company's profile.
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 Company's ability to complete its previously announced private placement; the Company's ability to secure a large transitionary manufacturing facility that will lower overhead costs and accelerate the ramp up of production (if at all); the Company's ability to secure the team needed to recommence operations; the timing of the commencement of the 12-week training program; the significance of additional deal interest in the Company's line of products; management's expectations regarding strong dealer support; 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+ (www.sedarplus.ca) including, without limitation, the filing statement filed by the Company on February 23, 2021, and the MD&A. 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