LMP Automotive Holdings, Inc. (NASDAQ: LMPX) (“LMP” or the
“Company”), an e-commerce and facilities-based automotive retailer
in the United States, today announced it has entered into
dealership and real estate asset sale agreements (the “Agreements”)
to sell its Kia dealerships in Port Charlotte, FL, Cape Coral, FL
and Beckley, WV, its Subaru dealership in Beckley, WW, its
Chevrolet dealership in Beckley, WV and its General Motors
dealership in Beckley, WV (the “Sale”).
The Company anticipates that the expected closing of the Sale
will occur in October of this year, 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.
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 LMP Board of Directors (the
“Board”) unanimously recommends that at our next Special Meeting of
Stockholders (the “Special Meeting”) the Company’s stockholders
vote to approve a proposed plan of liquidation of LMP’s assets and
the dissolution of the Company (the "Plan of Liquidation"). The
Plan of Liquidation will allow the LMP Board to sell all of the
Company’s assets, distribute the net proceeds to stockholders and
dissolve the Company. Importantly, the Plan of Liquidation will
allow LMP to consummate the Sale of the above-mentioned assets and
to enter into sales for its remaining assets not currently subject
to sale agreements and to enter into value maximizing transactions
without subjecting any such transaction to the delay and
conditionality associated with having to seek and obtain
stockholder approval.
“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,” said
Sam Tawfik, Chief Executive Officer and Chairman. “We believe that
the Plan of Liquidation will maximize stockholder value as we
continue to sell our remaining assets. Management believes that
upon finalization of the Plan of Liquidation we expect that the
Company will be able to distribute aproximatly $115 million to $126
million to shareholders.”
ABOUT LMP AUTOMOTIVE HOLDINGS, INC. LMP Automotive
Holdings, Inc. (NASDAQ: LMPX) is a growth company with a long-term
plan to profitably consolidate and partner with automotive
dealership groups in the United States. We offer 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 Current Report on Form 8-K,
including but not limited to: (i) the risk that the transaction may
not be completed in a timely manner or at all, (ii) the failure to
satisfy the conditions to the consummation of the Atlantic Sale,
(iii) the occurrence of any event, change or other circumstance
that could give rise to the termination of the Agreements, (iv) the
effect of the announcement or pendency of the transaction on the
Company’s business relationships, operating results and business
generally, and (v) risks that the transaction disrupts current
plans and operations of the Company. 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.
Additional Information and Where to Find It
A full description of the terms of the Atlantic Sale and the
plan of liquidation will be provided in proxy statement to be filed
with the Securities and Exchange Commission (“SEC”) by the Company
that will include a proxy statement with respect to the stockholder
meeting of the Company to vote on a plan of liquidation. The
Company urges investors, stockholders and other interested persons
to read, when available, the preliminary proxy statement, as well
as other documents filed with the SEC, because these documents will
contain important information about the Company, the Atlantic Sale
and the plan of liquidation. The definitive proxy statement will be
mailed to stockholders of the Company as of a record date to be
established for voting on the plan of liquidation. Once available,
stockholders will also be able to obtain a copy of the proxy
statement, and other documents filed with the SEC without charge by
directing a request to: 500 East Broward Boulevard, Suite 1900 Fort
Lauderdale, FL 33394, or via email at investors@lmpah.com. The
preliminary and definitive proxy statement can also be obtained,
without charge, at the SEC’s website (www.sec.gov).
No Offer or Solicitation
This press release does not constitute an offer or invitation
for the sale or purchase of securities, assets or the business
described herein or a commitment to the Company, nor is it a
solicitation of any vote, consent or approval in any jurisdiction
pursuant to or in connection with the Atlantic Sale, the plan of
liquidation or otherwise, nor shall there be any sale, issuance or
transfer of securities in any jurisdiction in contravention of
applicable law.
Participants in Solicitation
The Company, and its respective directors and executive
officers, may be deemed participants in the solicitation of proxies
of the Company’s stockholders in respect of the plan of
liquidation. Information about the directors and executive officers
of the Company is set forth in the Company’s filings with the SEC.
Additional information regarding the identity of all potential
participants in the solicitation of proxies to the Company’s
stockholders in connection with the Atlantic Sale and plan of
liquidation and other matters to be voted upon at the special
meeting, and their direct and indirect interests, by security
holdings or otherwise, will be included in the definitive proxy
statement, when it becomes available.
LMP Automotive (NASDAQ:LMPX)
Historical Stock Chart
From Aug 2024 to Sep 2024
LMP Automotive (NASDAQ:LMPX)
Historical Stock Chart
From Sep 2023 to Sep 2024