COLLINGWOOD, Ontario, Jan. 20, 2023 (GLOBE NEWSWIRE) -- The Limestone Boat Company Limited ("Limestone" or the "Company") (TSXV: BOAT | OTCQB: LMSBF) – announces today that its wholly-owned subsidiaries Ebbtide Holdings, LLC, doing business as "TN Composites" ("TN Composites") and Limestone US Inc. ("Limestone US" and collectively with TN Composites, the "Limestone US Subsidiaries") have filed voluntary petitions for relief under Chapter 7 of the Bankruptcy Code in the United States Bankruptcy Court for the Middle District of Tennessee – Nashville Division (the "Bankruptcy Court"). Limestone expects that the Limestone US Subsidiaries will have a Chapter 7 Trustee appointed by the Office of the United States Trustee (the "Trustee"). Upon the commencement of the Chapter 7 filings by the Limestone US Subsidiaries, their respective business operations ceased immediately and the Trustee immediately took charge of the assets of the Limestone US Subsidiaries pursuant to the United States Bankruptcy Code. The Trustee is expected to liquidate the assets of the Limestone US Subsidiaries and to distribute the proceeds of such sale proceedings in accordance with the order of priority established under Title 11 of the United States Bankruptcy Code and under the supervision and approval of the Bankruptcy Court.
Going forward the Company will focus on the Limestone® brand and specifically ongoing efforts to pursue financial restructuring initiatives which are expected to be completed in Q1 2023. Until such time as the Company resumes manufacturing operations of the Limestone® brand, expected in Q4 2023 the Company is not projecting any revenue at this time. The Company remains committed to continuing its long-term operations for the Limestone® brand, including its conventional and EV powered offerings as soon as possible, and is also pursuing manufacturing opportunities in Canada for the Limestone® brand and its respective models and will provide additional information in this regard as it becomes available.
Scott Hanson, Chief Executive Officer of Ebbtide Holdings, LLC, and Limestone US Inc. said, “The combined effects of a challenging manufacturing environment on the sale and delivery of boats given the impact of the Coronavirus (COVID-19) pandemic on supply chain and labor have caused significant financial distress on our business and The Limestone Boat Company has determined that the best strategy to maximize value will be a voluntary liquidation of Ebbtide Holdings, LLC and Limestone US Inc. pursuant to an organized and orderly proceeding in the U.S. Bankruptcy Court. The Company’s US subsidiaries, Ebbtide Holdings, LLC and Limestone US Inc. lack sufficient liquidity to continue operating in the ordinary course of business and thus will no longer be producing boats in the Tennessee facility. I would like to thank all of our employees for their dedication and support, as well as our vendors and Aquasport dealers.”
Additional details relating to the bankruptcy proceeding by the Limestone US Subsidiaries:
- The Limestone US Subsidiaries have appointed Lefkovitz and Lefkovitz, PLLC in Nashville, Tennessee as legal counsel to assist them in connection with the Chapter 7 Bankruptcy filings.
- Court filings and other documents related to the proceedings are available on the Pacer website that can be found at www.tnmb.uscourts.gov.
The Limestone Boat Company’s decision to file voluntary petitions for relief under Chapter 7 of the Bankruptcy Code in the United States Bankruptcy Court for the Middle District of Tennessee for both Ebbtide Holdings, LLC and Limestone US Inc. is believed to be the best strategy to maximize value for the stakeholders.
About The Limestone Boat Company Limited
The Limestone Boat Company Limited– owner and builder of Limestone® Boats - is publicly traded on the TSX Venture Exchange under the ticker symbol "BOAT" and on the U.S.-based OTCQB® Venture Market under the ticker symbol "LMSBF". They are headquartered in Collingwood, Ontario.
For more information, contact:
Bill Mitoulas | Investor Relations
800-720-2395
bill@limestoneboats.com
www.limestoneboatcompany.com
Scott Hanson | CEO of The Limestone Boat Company Limited
800-720-2395
info@limestoneboatcompany.com
Neither the 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 this news release.
Cautionary Note Regarding Forward-Looking Statements
Certain statements contained in this press release, and other publicly available documents including the documents referenced herein, constitute forward-looking information or forward-looking statements (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. Examples of such forward-looking information include, without limitation, the projected impact of the bankruptcy proceedings involving the Limestone US Subsidiaries on Limestone, the intention to restructure the Company's assets and liabilities, any future manufacturing opportunities for the Company and the Limestone brand in Canada, and further expected changes to the Company's operations and long-term viability. 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 Management's Discussion and Analysis for the year ended December 31, 2021 and the three months ended September 31, 2022. 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 information. All the forward-looking information made in this press release is 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 this forward-looking information.
