The Limestone Boat Company Limited Announces Debentureholder Meeting to Consider Restructuring Proposal and Provides Update on Private Placement

COLLINGWOOD, ON / ACCESSWIRE / June 20, 2023 / The Limestone Boat Company Limited ("Limestone" or the "Company") (TSXV:BOAT) - has called for a meeting of holders (the "Debentureholder Meeting") of its 10% Convertible Subordinated Debentures due May 14, 2024 (the "Convertible Debentures") to be held July 18, 2023, to consider its previously-announced proposal to amend the terms of the Convertible Debentures to permit the Company to convert the outstanding principal and interest thereunder into common shares of the Company ("Common Shares") at a conversion price of $0.071 per Common Share, subject to the definitive terms and conditions described in the associated documentation (the "Proposed Restructuring"). Limestone intends to implement the Proposed Restructuring by way of an Extraordinary Resolution passed either by written instrument approved by the Holders of not less than 66 2/3% of the principal amount of the outstanding Convertible Debentures (the "Requisite Consents") or at the Debentureholder Meeting by holders of not less than 66 2/3% of the principal amount of the outstanding Convertible Debentures attending such Debentureholder Meeting.

The Company also announces the extension of the proposed closing of its previously-announced private placement issuance (the "Private Placement") of up to 120,000,000 subscription receipts ("Subscription Receipts") at a price of $0.05 per Subscription Receipt for gross proceeds of approximately $6.0 million. The Private Placement is now expected to close on or about July 21, 2023, or such other date as determined by the Company in its sole discretion. Upon satisfaction of certain escrow release conditions, negotiated in connection with the Private Placement (the "Escrow Release Conditions"), and without the payment of any additional consideration, each Subscription Receipt will convert into one Common Share. The gross proceeds from the sale of the Subscription Receipts will be held in escrow and released to the Company only upon the satisfaction or waiver of the Escrow Release Conditions. All securities issued in connection with the proposed Private Placement will be subject to a hold period expiring four months and a day from the date of their issuance. The Company intends to use the net proceeds from the Private Placement for general working capital purposes including repayment of certain existing indebtedness of the Company.