LMP Announces $20 Million Private Placement of Series A Convertible Preferred Stock
February 24 2021 - 7:25PM
LMP Automotive Holdings, Inc. (NASDAQ: LMPX) (the "Company" or
“LMP”), an e-commerce and facilities-based platform for consumers
who desire to buy, sell, subscribe to or finance pre-owned and new
automobiles, today announced that it has entered into definitive
securities purchase agreements with a group of institutional
investors (the “Investors”), which will result in gross proceeds to
LMP of approximately $20 million, before deducting offering
expenses. LMP intends to use the proceeds to drive growth,
including closing on its Stage 1 Acquisitions, which are expected
to begin closings in the first week of March, and for working
capital purposes.
LMP will issue and sell 20,100 shares of a newly
created series of Series A Convertible Preferred Stock (the
“Preferred Stock”) in a privately negotiated transaction exempt
from registration under Section 4(a)(2) of the Securities Act of
1933, as amended (the “Securities Act”), and the rules and
regulations promulgated thereunder. The Preferred Stock will be
convertible into shares of LMP’s common stock at an initial
conversion price of $17.50 per share. The Investors will also
receive warrants (the “Warrants”) to purchase 861,429 shares of
LMP’s common stock at an exercise price of $21.00 per share. The
private placement is subject to customary closing conditions.
This press release shall not constitute an offer
to sell or the solicitation of an offer to buy, nor shall there be
any sale of these securities in any state or jurisdiction in which
such offer, solicitation, or sale would be unlawful prior to
registration or qualification under the securities laws of any such
state or jurisdiction. The Preferred Stock and the shares of common
stock issuable upon conversion of the Preferred Stock and exercise
of the Warrants will not be registered under the Securities Act or
any state securities laws, and unless so registered, may not be
offered or sold in the United States except pursuant to an
exemption from the registration requirements of the Securities Act
and applicable state laws.
ABOUT LMP AUTOMOTIVE HOLDINGS, INC. –
“BUY, SUBSCRIBE, SELL AND REPEAT.”LMP Automotive Holdings,
Inc. (NASDAQ: LMPX) describes its business model as “Buy,
Subscribe, Sell and Repeat.” This means that we “Buy” pre-owned
automobiles primarily through auctions or directly from other
automobile dealers, and new automobiles from manufacturers and
manufacturer distributors. We “Subscribe” the automobiles to our
customers by allowing them to enter into our subscription plan for
automobiles in which customers have use of an automobile for a
minimum of thirty (30) days. LMP’s vehicle subscription membership
includes monthly swaps and offers the flexibility to return the
vehicle without penalty, upgrade your vehicle to a more premium
model or downgrade for a lesser cost model when you like. We “Sell”
our inventory, including automobiles previously included in our
subscription programs, to customers as well, and then we “Repeat”
the whole process.
Investor Relations:
LMP Automotive Holdings, Inc.500 East Broward Boulevard, Suite
1900Fort Lauderdale, FL 33394investors@lmpah.com
For more information visit: https://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. Forward-looking statements are
based on management’s current expectations and are subject to risks
and uncertainties that could negatively affect our business,
operating results, financial condition, and stock value. Factors
that could cause actual results to differ materially from those
currently anticipated include: our dependence upon external sources
for the financing of our operations; our ability to effectively
execute our business plan; our ability to maintain and grow our
reputation and to achieve and maintain the market acceptance of our
services and platform; our ability to manage the growth of our
operations over time; our ability to maintain adequate protection
of our intellectual property and to avoid violation of the
intellectual property rights of others; our ability to maintain
relationships with existing customers and automobile suppliers, and
develop relationships; and our ability to compete and succeed in a
highly competitive and evolving industry; inability to satisfy
closing conditions to the issuance of the securities described
herein; as well as other risks described in our SEC filings. 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.
SOURCE: LMP Automotive Holdings, Inc.
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