Limestone Announces Approval of Debentureholders to Convert It's 10% Unsecured Convertible Debentures into Common Shares and Provides Other Corporate Updates Regarding the Recommencement of Manufacturing Activities

COLLINGWOOD, ON / ACCESSWIRE / July 19, 2023 / The Limestone Boat Company Limited ("Limestone" or the "Company") (TSXV:BOAT) - is pleased to announce that the Company received approval from the holders of its 10% convertible subordinated debentures due May 14, 2024 (the "Convertible Debentures") at a meeting of debentureholders held on July 18^th, of certain amendments to the terms of the Convertible Debentures which, among other things, provide the Company with the right to convert the outstanding principal and interest under the Convertible Debentures into common shares of the Company ("Common Shares") at a conversion price of $0.071 per Common Share. The amendments were unanimously approved by all debentureholders represented at the meeting.

Recommencement of Manufacturing Operations

In addition to the foregoing, the Company also wishes to provide an update on the status of the proposed commencement manufacturing operations in New Brunswick, Canada. Based on management's current expectations, it is anticipated that manufacturing operations will recommence in Q1 2024, with a particular 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 FY 2025, furher expanding the Company's outboard offering.

"Given the unanimous approval by all debentureholders represented at the meeting July 18^th, the Company will now turn its focus to executing its plan to ensure the successful recommencement of manufacturing in the Maritimes in Q1 2024 following the onboarding and employee training phase commencing this fall. The strategy afoot is expected to position the Company well to start satisfying the continued backlog in market demand for Limestone boats, while also leading to improved production efficiency, consistent product quality, throughput, revenue, and profitability in the coming years", said Limestone CEO Scott Hanson

With the anticipated recommencement of manufacturing operations in Q1 2024, the Company also plans to establish temporary operating facilities for the purposes of onboarding and training its manufacturing staff in collaboration with the NBCC, St. Andrews Campus to be held at the College and the Company's transitionary manufacturing facilities in the Port of Bayside complex. The Company also intends to move forward with executing a commercial lease associated with the construction of its 100,000 square foot purpose-built, state-of-the-art closed molding and vacuum infusion boatbuilding facility located in Bayside, New Brunswick near the Port of Bayside Industrial Park. The Company expects the construction of this new facility to be completed in Q3 2024