COLLINGWOOD, ON, Aug. 30, 2021 /CNW/ - The Limestone Boat
Company Limited ("Limestone" or the "Company") (TSXV:
BOAT) – owner and builder of Limestone® boats and Aquasport
coastal and bay boats today reported its financial results for the
second quarter ended June 30, 2021
("Q2" FY2021). All dollar amounts are in Canadian dollars unless
otherwise noted.
Q2 FY Business Highlights:
- The Company acquired Ebbtide Holdings, LLC ("Ebbtide")
for a total purchase price of $6,250,000
USD comprised of $3,750,000
USD in cash and $2,500,000 USD
in Limestone common shares determined based on $0.33CAD per share.
At the time of acquisition, Ebbtide was the contract manufacturer
of the Limestone® boats and manufactured the Aquasport and Boca Bay
boat brands for its own account.
- In conjunction with the acquisition, the Company completed a
non-brokered private placement of $14,089,483 subordinated unsecured convertible
debentures (see press release dated May 18,
2021) to provide funding for the Ebbtide acquisition and to
provide working capital going forward.
- Through the acquisition of Ebbtide, Limestone assumed control
over the design, manufacturing, marketing, sales and distribution
of the Aquasport and Boca Bay brands in its newly acquired facility
in White Bluff, Tennessee
increasing the Company's dealer footprint to 50 locations from the
Great Lakes to the Southern United
States.
- The Company has made strategic investments in the facilities,
its labour force, and research and development during the second
quarter, providing a foundation to increase its capacity steadily
upward from the current 4 boats a week to meet the increasing
demand for Aquasport coastal and bay boats, and Limestone©
brands.
- Consistent with the prior year, the Company continues to build
its brand, relationships, and processes, and has taken deposits on
several boats for which deliveries are expected to begin next
quarter.
- In addition to the acquisition of Ebbtide, during the quarter
the Company completed a review of the Aquasport product portfolio,
dealer representation, marketing and operations, and identified
opportunities to elevate the brand's market position and price
point commensurate with the perceived value among consumers and
dealers. Additionally, the Company identified immediate dealer,
product development, and operational opportunities to maximize the
Company's brand and model mix to meet retail demand and achieve
revenue targets. The Company also launched new Aquasport and
Limestone Corporate web sites.
- The Company entered into a strategic relationship with Vision
Marine Technologies (NASDAQ:VMAR) ("Vision Marine") to
integrate Vision Marine's proprietary E-Motion electric outboard
propulsion powertrain option into select Limestone® and Aquasport
models. (see press release May 19,
2021 for further information).
- There are several risk factors facing the Company including but
not limited to the impact of Covid-19 on the operations and ongoing
supply chain disruption as more fully described in the Company's
Management Discussion and Analysis for Q2 FY2021 (the
"MD&A") available on the Company's profile on
www.sedar.com or on the Company's website at
www.limestoneboats.com.
Limestone CEO Scott Hanson
stated, "In recognition of global supply chain issues affecting our
industry, Limestone has re-aligned its productions plans by brand
and model to align with market demand and supply challenges, as
well as having developed a 3-phased, 5-year growth strategy which
will see the Company achieve measured, consistent growth in
production and sales leading into 2022 and beyond. This plan will
allow us to form guidance that we intend to deliver to the market
in January 2022."
Q2 FY Financial Highlights:
- Reported a net loss of $5,534,940
for the six months ended June 30,
2021, which included approximately $2
million of non-cash expenses, compared to a loss of
$258,800 for the six months ended
June 30, 2020.
- Reported a net loss of $2,796,750
for the three months ended June 30,
2021, which included approximately $365,000 of non-cash expenses, compared to a loss
of $76,020 for the three months ended
June 30, 2020.
- The Company ended the quarter with cash of $4,975,437 compared to $130,181 for the year ended December 31, 2020.
- The Company raised proceeds from a non-brokered convertible
debenture financing in the quarter totaling $14,089,483. The proceeds were used to fund the
Ebbtide acquisition and operations during the quarter.
Summary of Financial Information and Overall
Performance:
Review of Statements of Comprehensive Income:
The Company's complete Financial Statements and Management
Discussion and Analysis for the quarter ended June 30, 2021 are available at www.sedar.com or
on the Company's website at www.limestoneboats.com.
About The Limestone Boat Company Limited
The Limestone Boat Company – owner and builder of
Limestone® boats and Aquasport coastal and 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 sq. ft. 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.
Neither the TSX Venture Exchange nor its Regulation Services
Provider accepts responsibility for the adequacy or accuracy of
this news release.
Cautionary Note Regarding Forward-Looking
Statements
Certain statements contained in this press release constitute
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. Actual future results may differ materially. The Company is
subject to a number of risks relating to integration and go-forward
operations, certain of which are more particularly described in the
Company's public filings available on SEDAR including, without
limitation, the filing statement filed by the Company on
February 23, 2021, and the MD&A.
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. The foregoing statements
expressly qualify any forward-looking information contained
herein.
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. All the forward-looking statements made
in this press release are qualified by these cautionary statements
and other cautionary statements or factors in this press release.
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. Unless
required by applicable securities law, the Company does not intend
and does not assume any obligation to update these forward-looking
statements.
SOURCE The Limestone Boat Company