LMP Automotive Holdings And Affiliates Announces Certain Asset Sale Agreements With Morgan Auto Group And Provides Corporate Update, Terms Not Disclosed
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.