LMP Automotive Holdings, Inc. and its Affiliates Announces Certain Asset Sale Agreements with Morgan Auto Group and Provides a Corporate Update
October 19 2022 - 4:00PM
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.
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