LIMESTONE BOAT CO LTD - LMSBF STOCK NEWS

The Limestone Boat Company announced the Chapter 7 bankruptcy filings for its subsidiaries, TN Composites and Limestone US, on February 22, 2023. The company expects timely progress in asset liquidation under the supervision of a trustee. This filing constitutes an 'Event of Default' under their existing debenture indenture, making all outstanding amounts due. Limestone is simultaneously pursuing financial restructuring and plans to relocate manufacturing operations to New Brunswick, Canada, with a new facility expected to open in Q1 2024. The company aims to produce several models, including electric boats, to enhance its market position.

The Limestone Boat Company Limited (OTCQB: LMSBF) announced plans to voluntarily terminate its listing on the OTCQB Venture Market. This decision, made by the Board of Directors, is influenced by the associated costs and administrative burdens of maintaining the OTCQB listing. The company's shares will remain listed on the TSX Venture Exchange (TSXV: BOAT). The Limestone Boat Company will provide further updates once the delisting process is confirmed. The company, known for its Limestone® Boats, is headquartered in Collingwood, Ontario.

The Limestone Boat Company Limited (TSXV: BOAT | OTCQB: LMSBF) has announced that its subsidiaries, Ebbtide Holdings and Limestone US Inc., have filed for Chapter 7 bankruptcy in the U.S. Bankruptcy Court for the Middle District of Tennessee. This filing follows the cessation of their operations and is expected to lead to asset liquidation overseen by a Chapter 7 Trustee. The Company aims to focus on restructuring its financials and plans to resume production of the Limestone brand in Q4 2023. However, no revenue is projected until then due to the current operational halt stemming from a challenging manufacturing environment influenced by COVID-19 supply chain issues.

The Limestone Boat Company Limited (OTCQB: LMSBF) reported its Q3 FY 2022 financial results, indicating a revenue decrease of 33% from Q2 2022, totaling $2,913,677. Despite a 14% increase in average gross revenue per unit, unit production fell from 38 to 27 due to supply chain issues. The gross margin improved slightly to 4.7%, yielding a gross profit of $139,550. The company incurred an operating loss of $3,007,978 and comprehensive loss of $2,529,599. Manufacturing operations are temporarily suspended in Tennessee, pending financing solutions as the company seeks to maintain operations and pursue alternative liquidity options.

The Limestone Boat Company (TSXV: BOAT | OTCQB: LMSBF) has announced significant cost-saving measures, including layoffs of approximately 30 employees and temporary curtailment of its operations in White Bluff, Tennessee. This strategic move aims to ensure the company's sustainability amidst financial pressures. Additionally, the company has withdrawn its previously proposed debt financings. In a related management change, Charmaine Crooks has resigned from the board of directors, with the company expressing gratitude for her service.

The Limestone Boat Company (TSXV: BOAT | OTCQB: LMSBF) announced staffing realignments and cuts to its management and operational teams due to economic conditions and supply chain challenges. This strategic decision aims to enhance production capabilities and focus on higher-margin models, addressing the current market demand. CEO Scott Hanson emphasized that the company is positioned to navigate uncertainties while maximizing dealer demand, supported by a robust order backlog.

The Limestone Boat Company has granted 4,745,000 stock options to directors, officers, employees, and consultants, with an exercise price of $0.12 per share for five years. The options will vest based on two schedules: 31.25% will vest immediately for some recipients, while others will see 25% vest after nine months, followed by quarterly vesting for three years. Notably, no options were allocated to the Board Chair or CEO. This initiative aims to incentivize personnel while aligning their interests with shareholder value.

The Limestone Boat Company (TSXV: BOAT | OTCQB: LMSBF) has made an initial order for electric propulsion systems for its 2024 model year boats, following successful sea trials of the E-Motion electric outboard. The partnership with Vision Marine positions the company to meet growing consumer demand for emission-free boating. The new model will be showcased at the Fort Lauderdale International Boat Show, with deliveries expected in Q4 2023. The company also reports strong sales in traditional combustion engine boats, maintaining a balance between electric and conventional propulsion.

The Limestone Boat Company has announced an expansion of its White Bluff, Tennessee manufacturing facility, which will add up to 132 full-time jobs. The expansion, costing $23.1 million, aims to enhance production capacity and incorporate advanced technology over the next three to five years. With state support, the project includes integrating new manufacturing processes and creating a new building for administration and R&D. The company plans to finance these initiatives through equity and debt offerings in 2023, with completion expected by Q1 2025.