The debt financing with growth capital will enable the company to execute its expansion strategy and meet increasing demand and backlog for its boats.

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COLLINGWOOD, Ont., August 11, 2022 (GLOBE NEWSWIRE) — The Limestone Boat Company Limited (the “company“) (TSXV: BOOT | OTCQB: LMSBF) is pleased to announce that there is a Term Sheet (the “term sheet’) with a strategic lender (the ‘lender’) to provide up to $6 million in secured debt financing (the ‘Credit Financing“). The debt financing is expected to be granted to the Company in a number of tranches between August and October 2022.

Proceeds from the Debt 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 facilities; and (iii) for working capital and general corporate purposes.

Roar Capital Corporation acted as strategic advisor to the Company in connection with the debt financing.

The debt financing will allow the Company to increase its inventory levels, reduce manufacturing supply chain disruptions and begin the phased transformation of its manufacturing capabilities through the expansion and reconfiguration of select manufacturing spaces, the integration of additional technology and the expansion of its large boat production capacity and improved manufacturing process.

The Term Sheet is non-binding and any formal transaction between Limestone Boat Company and the Lender is subject to the parties signing a Definitive Loan Agreement and other security documents. The transactions set out in the Term Sheet are subject to a number of terms and conditions, including the completion of required final documentation, due diligence, regulatory approvals, as well as other requirements customary in completing transactions…