- During the quarter the company completed a reverse takeover transaction with a capital pool company, LL One Inc.
- LL One Inc. changed its name to “The Limestone Boat Company Limited” and began trading on the TSXV on March 4 under the symbol BOAT
- The company closed non-brokered financing of $14.1 million and acquired Ebbtide Holdings, a 145,000 square foot Tennessee-based manufacturing facility
- Limestone ended the quarter with cash of $1,193,659 compared to $130,181 for the comparative quarter in 2020
- The Limestone Boat Company Limited is the builder of Limestone, Aquasport and Boca Bay brands
- The Limestone Boat Company Limited (BOAT) is up 10.35 per cent, trading at C$0.32 per share at 9:35 am ET
The Limestone Boat Company (BOAT) reported its financial results for the fiscal quarter ended March 31, 2021.
“In a short period of time since our listing on the TSXV in March, Limestone Boats has quickly delivered on a number of critical milestones to ensure a strong corporate, operational, and financial foundation for our company and its future,” stated Limestone’s CEO, Scott Hanson.
“We closed non-brokered financing of $14.1 million and acquired Ebbtide Holdings, a 145,000 square foot Tennessee-based manufacturing facility that is currently producing 4 to 5 boats per week, with expectations to reach 5 to 6 boats per week by late June, and increasing steadily through the balance of the year. The acquisition allows us to take control of our supply chain and secure production in a market where inventories are at historically low levels.
Furthermore, the acquisition allows us to diversify our brand portfolio while rapidly scaling our distribution footprint, nearly tripling the combined number of Limestone Boat Company dealers to over 50 throughout the Great Lakes and the Northeast, Southeast, and Gulf Coast regions of the United States.
The marine industry is experiencing unprecedented demand and Limestone is uniquely positioned to become a growing force in the North American market.”
Q1 FY Business Highlights:
- During the quarter the company completed a reverse takeover transaction with a capital pool company, LL One Inc.
- LL One Inc. changed its name to “The Limestone Boat Company Limited” and began trading on the TSXV on March 4 under the symbol BOAT.
- The company has taken deposits on several boats for which deliveries are expected to begin next quarter.
- Limestone acquired Ebbtide Holdings, LLC for a total purchase price of $6,250,000 USD. Ebbtide is the contract manufacturer of the Limestone® boats and manufactures the Aquasport and Boca Bay boat brands on its own account
- Limestone completed a non-brokered private placement of $14,097,000 to provide funding for the Ebbtide acquisition and to provide working capital going forward
- Limestone has 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.
- The company anticipates increasing its capacity from 4 to 5 boats per week to meet the increasing demand for Aquasport, Boca Bay, and Limestone Brands.
- Limestone entered into a strategic relationship with Vision Marine Technologies to integrate Vision Marine’s proprietary E-Motion electric outboard propulsion powertrain option into select Limestone® and Aquasport models.
Q1 FY Financial Highlights:
- Limestone reported a loss for the quarter of $2,738,190 compared to a loss of $182,780 in the comparative quarter for 2020.
- Limestone ended the quarter with a cash balance of $1,193,659 compared to $130,181 for the comparative quarter in 2020.
- The company raised proceeds from financings in the quarter of $3,230,200 as part of the reverse takeover transactions of LL One Inc. The proceeds were used to fund operations during the quarter.
Limestone incurred one-time listing expenses associated with the RTO transaction of $1,650,768, of which $1,589,117 are non-cash expenses and are discussed in the MD&A.
Summary of Financial Results:
| Three months ended | ||||||
| March 31, 2021 | March 31, 2020 | |||||
| Salaries and wages | 316,240 | $139,650 | ||||
| Stock based compensation | 125,934 | – | ||||
| Listing expenses | 1,650,768 | – | ||||
| Professional fees | 491,284 | – | ||||
| Advertising and promotion | 85,017 | – | ||||
| General and administrative expense | 55,645 | 43,130 | ||||
| Foreign exchange loss | 2,346 | – | ||||
| Depreciation of property and equipment | 10,531 | – | ||||
| Operating loss | (2,737,765) | (182,780) | ||||
| Other income | 115 | – | ||||
| Income tax expense | (540) | – | ||||
| Loss for the period | (2,738,190) | (182,780) | ||||
| Currency translation adjustment | (10,469) | |||||
| Comprehensive loss for the period | $(2,748,659) | $(182,780) | ||||
| Net loss per share (basic & diluted) | $(0.036) | $(0.004) |
Headquartered in Collingwood, Ontario, The Limestone Boat Company Limited is the builder of Limestone, Aquasport and Boca Bay brands.
The Limestone Boat Company Limited (BOAT) is up 10.35 per cent, trading at C$0.32 per share at 9:35 am ET.