Limestone Boat negotiates with debentureholders on restructuring

Chicago, April 12 – Limestone Boat Co. entered into negotiations with its creditors for a restructuring of the company’s balance sheet, according to a press release.

The company has proposed to convert all of the outstanding interest and principal owing under its 10% debentures issued by the company in May of 2021, May of 2022 and June of 2022 into common shares of the company at a conversion price of approximately C$0.071 per common share.

The company has received indicative support for the proposed restructuring from a majority of debentureholders.

The company also expects to raise additional working capital through a proposed private placement issuance of up to 120 million subscription receipts at a price of C$0.05 per subscription receipt for gross proceeds of approximately C$6 million.

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.

The owner and builder of Aquasport Boats, Limestone Boats and Boca Bay Boats is based in Collingwood, Ont.

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