The Limestone Boat Company Executes Term Sheet For Up to $6M Term Loan
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COLLINGWOOD, Ontario, Aug. 11, 2022 (GLOBE NEWSWIRE) — The Limestone Boat Company Limited (the “Company“) (TSXV: BOAT |OTCQB: LMSBF) is pleased to announce that it has executed a term sheet (the “Term Sheet“) with a strategic lender (the “Lender“) to provide for up to $6M USD in secured credit financing (the “Credit Financing“). The Credit Financing is expected to be advanced to the Company in a series of tranches between August and October of 2022.
The proceeds from the Credit Financing are expected to be used for: (i) improvements to the Company’s manufacturing facility in White Bluff, Tennessee; (ii) the acquisition of additional manufacturing equipment; and (iii) for working capital and general corporate purposes.
Roar Capital Corporation acted as a strategic consultant to the Company in connection with the Credit Financing.
The Credit Financing will allow the Company to bolster its inventory levels, reduce supply chain disruptions on manufacturing, and commence the phased transformation of its manufacturing capabilities through the expansion and reconfiguration of select production spaces, integration of additional technology, expansion of its large boat production capacity, and enhanced manufacturing process flow.
The Term Sheet is non-binding and any formal transaction between the Limestone Boat Company and the Lender is subject to the parties executing a definitive loan agreement and other security documentation. The transactions set out in the Term Sheet are subject to a number of terms and conditions including the completion of the necessary definitive documentation, due diligence, regulatory approvals as well as other requirements that are customary when entering into transactions of this nature.
“We are delighted to welcome aboard a new stakeholder who shares in our vision for the next phase of our company’s growth strategy,” stated Scott Hanson, Chief Executive Officer of the Limestone Boat Company. “This capital injection will strengthen our balance sheet and further reinforces the foundation we’ve built since acquiring the Company just 14 months ago. Investing in procurement, the facilities, technologies, and processes required to expand our throughput capacity and increase production scale will enable us to meet our existing order backlog and the growing demand for our boats.”
The Limestone Boat Company – owner and builder of Aquasport Boats, Limestone® Boats and Boca Bay Boats – is publicly traded on the Toronto Venture Exchange under the ticker symbol BOAT. They are headquartered in Collingwood, Ontario with a 145,000 square foot manufacturing facility in White Bluff, Tennessee. The company is backed by a large, skilled labor force and dealer partners throughout the United States and the Canadian Great Lakes Region.
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Cautionary Note Regarding Forward-Looking Information
Certain statements contained in this press release constitute forward-looking statements or forward-looking information (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. Forward-looking information in this press release include statements regarding the ability of the Company to negotiate mutually acceptable definitive documents with the Lender, the use of proceeds from the Credit Facility, and the aggregate amount of advances under the Credit Facility.
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. Such factors include, among others, risks related to the Company’s proposed business, such as failure of the business strategy; risks related to the Company’s operations, such as additional financing requirements and access to capital; reliance on key and qualified personnel, insurance, competition, intellectual property and reliable supply chains; risks related to the Company and its business generally as well as with respect to the proposed Credit Financing.
The Company cautions that the foregoing list of material factors is not exhaustive. When relying on the Company’s forward-looking information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company has assumed a certain progression, which may not be realized. It has also assumed that the material factors referred to in the previous paragraph will not cause such forward-looking statements and information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS PRESS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. 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. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.