The Limestone Boat Company Limited announced a non-brokered private placement of 10% unsecured convertible debentures for gross proceeds of up to CAD 340,000 on May 12, 2022. The transaction will include participation as lead order commitment from Scott Hanson, Chief Executive Officer of the company of CAD 244,000. The debentures carry a maturity date of three years from the date of issuance and carry a fixed interest rate of 10% per annum, payable annually in arrears, commencing December 31, 2022.

The debentures are convertible into common shares of the company at a fixed conversion price of CAD 0.19 per share. If at any time following 120 days from the closing date and prior to the date that is 30 days prior to the maturity date of these debentures, the volume weighted average closing price of the common shares on the exchange is equal to or higher than CAD 0.38 per common share for 20 consecutive trading days, the company may notify the holders of these debentures that these convertible debentures will be automatically converted into common shares at the conversion price 30 days following the date of such notice. The company may complete the transaction in multiple tranches and is subject to receipt of all necessary corporate and regulatory approvals, including approval from TSX Venture Exchange.

The company expects to close the transaction on or about May 19, 2022. The securities issued are subject to hold period of four months and one day after the closing date. The company will pay cash commission of 8% of the gross proceeds from each debenture subscription and compensation options equal to 8% of the number of common shares.

Each compensation option will be exercisable by the holder thereof to acquire one common share at an exercise price of CAD 0.19 per share for a period of 18 months from the closing date of the proposed offering.