EINC E Automotive Inc

• Acquisition expands the Company's footprint in Gulf State region with its first asset in the 2nd largest used vehicle market in the U.S.

TORONTO, Jan. 31, 2023 /CNW/ - E Automotive Inc. d/b/a E INC (TSX: EINC) (the "Company" or "E INC"), today announced the successful completion of the previously announced acquisition of Houston Auto Auction, Inc. ("Houston Auto Auction"), a Houston-based independent auction marketplace that specializes in commercial vehicle sales. E INC is acquiring Houston Auto Auction for total cash consideration of US$5.5 million, with US$2.5 million paid at closing and the remaining balance to be paid in equal installments on the first and second anniversaries of the closing date. The first payment was funded by cash on hand.

Houston Auto Auction focuses on commercial accounts with a specialization in fleet and repossession vehicle sales. It transacted approximately 6,500 vehicles in 2022.  Houston Auto Auction has historically generated positive EBITDA on a non-IFRS basis. The greater Houston metro area has a population of approximately 7 million served by nearly 2,100 automotive dealers located within the region. 

TPC Management acted as advisor to Houston Auto Auction.

EINC's mission is to optimize the online vehicle buying, selling, and management experience for automotive dealers and consumers. EINC has a digital platform (the "Platform") that provides automotive dealerships with access to an online wholesale auction marketplace where they can purchase or sell vehicles to other dealers, as well as access innovative software solutions to support dealers' digital retailing and inventory management. Access to EINC's Platform is complemented by ancillary service offerings to assist dealers with supplementary auction-related needs, including driving consumer traffic to their digital properties and optimizing other business processes. E Inc.'s digital wholesale marketplace goes to market under the brand EBlock, and EINC's digital retail suite of products goes to market under the brand EDealer.

Houston Auto Auction is an independent auto auction that has been in business since 1964. It is well known in its local market for specializing in "Fleet" sales and providing exemplary customer service to both commercial and repossession accounts, with many customer relationships that have sold with Houston Auto Auction for more than 30 years.

This press release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking information") within the meaning of applicable securities laws, including statements regarding: launching our EBlock marketplace in the greater Houston metro area; integrating Houston Auto Auction's business; and future expansion and growth. In some cases, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "targets", "expects", "is expected", "an opportunity exists", "budget", "scheduled", "estimates", "outlook", "forecasts", "projection", "prospects", "strategy", "intends", "anticipates", "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or, "will", "occur" or "be achieved", and similar words or the negative of these terms and similar terminology. In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward-looking information.

Statements containing forward-looking information are not historical facts but instead represent management's expectations, estimates and projections regarding future events or circumstances. This forward-looking information is based on our opinions, estimates and assumptions that, while considered by the Company to be appropriate and reasonable as of the date of this press release, are subject to known and unknown risks, uncertainties, and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to: the risk that the Houston Auto Auction business will not perform in accordance with expectations and past history; the risk that Houston Auto Auction's 2022 financial performance will not meet expectations; the risk that Houston Auto Auction may not be efficiently integrated or that synergies will not be realized; and those other risks discussed in greater detail under the "Risk Factors" section of our annual information form prospectus, which is available under our profile on SEDAR at www.sedar.com. If any of these risks or uncertainties materialize, or if the opinions, estimates or assumptions underlying the forward-looking information prove incorrect, actual results or future events might vary materially from those anticipated in the forward-looking information. Although we have attempted to identify important risk factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other risk factors not presently known to us or that we presently believe are not material that could also cause actual results or future events to differ materially from those expressed in such forward-looking information.

There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, the Company assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

All of the forward-looking information contained in this press release is expressly qualified by the foregoing cautionary statements.

SOURCE E Automotive Inc.