Limestone Boat Company completes acquisition of Ebbtide Holdings, LLC

Limestone® L-200CC © The Limestone® Boat Company

The Limestone Boat Company Limited ("Limestone" or the "Company") (TSXV: BOAT) manufacturer of the heritage brand Limestone® Boats - is pleased to announce the closing of its previously disclosed acquisition of Ebbtide Holdings, LLC ("Ebbtide"), a leading manufacturer of boats located in White Bluff, TN (the "Acquisition").

The purchase price for 100% of the issued and outstanding securities of Ebbtide consisted of US$3.75 million in cash and US$2.5 million of Limestone common shares issued at an ascribed price of CDN$0.33 per share. In total, 9,302,256 Limestone common shares were issued to the Ebbtide vendor group, subject to certain contractual lock-up provisions.

Limestone also completed a concurrent, non-brokered private placement of $14,097,000 of subordinated unsecured convertible debentures (the "Private Placement"), in order to fund the cash portion of the purchase price for the Acquisition and to provide the Company with go-forward working capital. The Private Placement included an investment from a strategic industry participant.

Through the acquisition of Ebbtide, Limestone will not only take control of its own destiny, but 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.

Ebbtide- a centrally-located U.S. manufacturer with a 40+ year track record of manufacturing quality watercraft - currently manufactures the Aquasport and Boca Bay brands, as well as the Limestone model line-up under previous contract arrangements in its 145,000 sq. ft. facility in White Bluff, Tennessee.

Limestone's acquisition allows for the expanded production of all three brands, to meet the growing market demand for marine products. The Company now has over 50 independent dealer locations servicing the East Coast & Gulf Coast of the United States, the Great Lakes and Southern Ontario, Canada.

"The acquisition of Ebbtide Holdings is a keystone transaction in the continued growth of our Company," said Scott Hanson, Limestone's CEO. "The combination of heritage brands Limestone and Aquasport provides continuity in reputation for safety, performance and quality, coupled with the addition of Boca Bay, and potential resurrection of the Ebbtide brands further diversifying the Company's product offerings. Our team members in Collingwood, Ontario will be responsible for directing product development and North American sales, marketing, distribution, and finance, allowing the team in Tennessee to focus on the manufacturing of quality, performance boats that retailers and consumers alike can count on, backed by a limited lifetime, transferable warranty consumers would expect. By securing expanded manufacturing capacity and a broad dealer network, we are well positioned to become a growing force in the North American marine industry."

Hanson continued: "Our goal is also to build on the current team in White Bluff, TN, expanding on the company's skilled labor force, creating a place that our people not only want to come to for work, but brands that they take pride in producing. We are now on our way to achieving these goals with our expanded team and the resources to invest in our people and our products."

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