The Limestone Boat Company Ltd incurred an operating loss of Canadian $1,353,947 and $2,565,861 during the three and six months ended September 30 2023.
Included in the operating loss were non-cash costs in the amount of $914,123 and $1,783,491 during the three and six months ended September 30, 2023.
The Company currently faces several risks including financing risks, liquidity risks, market risks and supply chain risks, however it is continuing to advance its business and operations, including the restructuring of its balance sheet and the previously announced private placement financing.
In addition, it has relocated its manufacturing operations to St Stephen, New Brunswick, entering into a commercial lease on a new 33,000sqft manufacturing facility in October 2023.
Currently, upgrades and retrofitting are underway with completion expected during late February 2024. Manufacturing is anticipated to commence in March 2024.
This new facility will allow the Company to keep its short-term overhead costs low, while allowing production to be ramped up in-line with market and dealer demand.
A labour recruitment campaign is underway.
In March 2023, it was announced that the Limestone Boat Company had decided to file voluntary petitions for relief under Chapter 7 of the Bankruptcy Code in the United States Bankruptcy Court.
Throughout the suspension of manufacturing operations, the Company says its dealer partners have remained supportive, and there are more than a dozen additional dealers that have expressed interest in the Limestone model line-up given current market dynamics, brand following and Limestone’s outboard power configurations.