FORT LAUDERDALE, Fla., Oct. 19, 2022 (GLOBE NEWSWIRE) -- LMP Automotive Holdings, Inc. (“LMP” or the “Company”), an e-commerce and facilities-based automotive retailer in the United States, today announced it has entered into definitive dealership and real estate asset sale agreements (the “Agreements”) to sell LMP’s Kia dealerships in Port Charlotte, FL and Cape Coral, FL to Morgan Auto Group.
Morgan Auto Group owns and operates fifty-eight (58) franchise dealerships throughout the state of Florida. They acquired their first Kia dealership in 2015 and own and operate five (5) Kia dealerships in the state of Florida today.
There are no financing contingencies associated with these acquisitions and the funds are readily available internally at Morgan Auto Group to close. The Company anticipates that the expected closing of the Sale will occur prior to year-end, subject to the terms of the Agreements and numerous conditions precedent to Closing including but not limited to regulatory approval including any approval necessary under the Hart-Scott Rodino Antitrust Act.
Furthermore, LMP expects to close on its Tennessee dealership and real-estate interest sale in the coming weeks.
Additionally, LMP has received Indications of Interest for its Beckley, WV, its Subaru and Kia dealerships in Beckley, WW, its Chevrolet dealership in Beckley, WV and its General Motors dealership in Beckley, WV and will pursue entering into new sale agreements in connection with these Dealerships within the coming weeks.
We continue to believe that our stock price does not reflect the net asset value of our company and believe that this transaction along with the sale of our remaining assets will enable us to maximize stockholder value.
The Company further announced that it is continuing to move forward with the Plan of Liquidation allowing the Company to sell all of the Company’s assets, distribute the net proceeds to stockholders and dissolve the Company.
“The Board and the management team all believe that, given the diversified nature of our portfolio, pursuing multiple transactions with different potential buyers for assets or groups of assets presents the best opportunity to maximize stockholder value as well as to maximize the net proceeds to be distributed to shareholders upon completion of the Plan of Liquidation,” said Sam Tawfik, Chief Executive Officer and Chairman.
ABOUT LMP AUTOMOTIVE HOLDINGS, INC.
LMP Automotive Holdings, Inc. offers a wide array of products and services fulfilling the entire vehicle ownership lifecycle, including new and used vehicles, finance and insurance products and automotive repair and maintenance.
Our proprietary e-commerce technology and strategy are designed to disrupt the industry by leveraging our experienced teams, growing selection of owned inventories and physical logistics network. We seek to provide customers with a seamless experience both online and in person. Our physical logistics network enables us to provide convenient free delivery points for customers and provide services throughout the entire ownership life cycle. We use digital technologies to lower our customer acquisition costs, achieve operational efficiencies and generate additional revenues. Our unique growth model generates significant cash flows, which funds our innovation and expansion into new geographical markets, along with strategically building out dealership networks, creating personal transportation solutions that consumers desire.
Investor Relations:
LMP Automotive Holdings, Inc.
500 East Broward Boulevard, Suite 1900
Fort Lauderdale, FL 33394
investors@lmpah.com
For more information visit: www.lmpmotors.com
FORWARD-LOOKING STATEMENTS:
This press release may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, each as amended. Such statements include, but are not limited to, any statements relating to our expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar matters that are not historical facts. These statements may be preceded by, followed by or include the words “aim,” “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “likely,” “outlook,” “plan,” “potential,” “project,” “projection,” “seek,” “can,” “could,” “may,” “should,” “would,” will,” the negatives thereof and other words and terms of similar meanings. These forward-looking statements are based on the Company’s current expectations and beliefs concerning future developments and their potential effects on the Company or any successor entity of the transaction and include statements concerning the expected timing of closing the transaction. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: (i) the risk that the Company is unable to enter into sales agreements with respect to the Terminated Dealerships in a timely manner or at all, or on favorable terms, (ii) the effect of the announcement or pendency of the Plan of Liquidation on the Company’s business relationships, operating results and business generally, (iii) the inability of the Company to complete the Plan of Liquidation and distribute proceeds to stockholders. There is no assurance that any forward-looking statements will materialize. You are cautioned not to place undue reliance on forward-looking statements, which reflect expectations only as of this date. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations or any changes in events, conditions or circumstances on which any such statement is based, except as required by law.
