The Limestone Boat Company Limited announces private placement of debentures of up to C$2.0 million

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COLLINGWOOD, Ontario, Oct. 21, 2022 (GLOBE NEWSWIRE) — The Limestone Boat Company Limited (the “society“) (TSXV:BOAT |OTCQB:LMSBF) is pleased to announce the terms of a proposed non-brokered private placement of secured debentures (“Debentures« ) representing an aggregate principal amount of up to C$2.0 million of Debentures (the « Private placementThe Company expects to use the net proceeds of the private placement for working capital and general corporate purposes.

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Up to 200 individual debentures may be issued under the private placement, each consisting of a principal amount of C$10,000 per debenture. Each Debenture will mature on the date that is four months after the closing date of the Private Placement (the « Due date« ). The principal amount of the debentures will bear interest at the rate of 17.0% per annum, which will be payable on the date of maturity. In connection with the private placement, the Company has agreed to issue to each subscriber, without additional consideration , such number of ordinary shares in the capital of the Company (each, a « Premium sharing“) is equal to 3.0% of the principal amount of the debentures purchased by each of these purchasers divided by $0.05.

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In consideration for certain services provided to the Company in connection with the Private Placement, the Company has agreed to pay a finder’s fee to various intermediaries, consisting of: (i) a cash fee equal to 5.0% of the capital of the debentures purchased by subscribers which were presented to the Company by each of these intermediaries (the “Cash fee« ) (other than with respect to Debentures sold to persons on the Corporation’s President’s List (the « President’s List« ), for which no cash compensation will be payable), and (ii) a number of Compensating Warrants equal to 5.0% of the principal amount of the Debentures purchased by the subscribers which were presented to the Company by each of these intermediaries divided by $0.05 (« Intermediary mandates“) (except with respect to debentures sold to persons on the President’s list, for which no finder’s warrant will be issued). Each finder’s warrant entitles its holder to purchase one common share of the Company (each, a « Warrant Action“) at an exercise price of $0.06 per warrant share for a period of one year following the closing date of the private placement.

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The private placement, including the issuance of debentures, free shares and warrants, remains subject to the approval of the TSX Venture Exchange (the « SwapIn addition, the Debentures, Bonus Shares, Finder’s Warrants and all Warrant Shares will be subject to a hold period expiring four months and one day after the date of issue in accordance with applicable laws. on applicable securities.

About Limestone Boat Company Limited:

The Limestone Boat Company – owner and builder of Aquasport boats, Limestone^® Boats and Boca Bay Boats – is listed on the Toronto Venture Exchange under the symbol BOAT. They have their headquarters in Collingwood, Ontario, and a 145,000 square foot manufacturing facility in White Bluff, Tennessee. The business is supported by a large skilled workforce and dealer partners across the United States and the Canadian Great Lakes region.

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For more information contact:

Investor Relations:
Bill Mitoulas
800-720-2395
bill@limestoneboats.com
www.limestoneboatcompany.com

Neither TSXV nor its Regulation Services Provider (as that term is defined in the
policies of the TSXV) accepts responsibility for the adequacy or accuracy of such news
Release.

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Declarations

Certain statements contained in this press release constitute forward-looking information. These statements relate to future events or future performance. Use of any of the words « anticipate », « believe », « could », « should », « would », « estimate », « expect », « expect », « indicate », « have intent », « 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 beliefs or assumptions as to the outcome and timing of such future events. Forward-looking statements in this press release include statements regarding the Company’s objectives, goals or future expectations; the use of the proceeds of the private placement; the ability of the Company to complete the private placement (if any) on the terms announced herein; the approval by the Exchange of the issuance of the private placement and all matters relating thereto; the Company’s ability to meet its obligations under the Debentures and all other obligations relating thereto. The forward-looking information contained in this release is made as of the date hereof, and the parties undertake no obligation to update or revise the forward-looking information, whether as a result of new information, future events or otherwise, except if required by securities laws. Due to 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.

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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 statements. Any forward-looking statements made in this press release are qualified by these cautionary statements and other cautionary statements or factors contained in this press release. There can be no assurance that actual results or developments will materialize or, even if substantially materialized, will have the anticipated consequences or effects on the Company. Unless required by applicable securities laws, the Company neither intends nor undertakes any obligation to update these forward-looking statements.