LMP Provides Update on its Recapitalization, Finance and Acquisition Closing Timing
FORT LAUDERDALE, FL, Oct. 29, 2021 (GLOBE NEWSWIRE) -- LMP Automotive Holdings, Inc. (NASDAQ: LMPX), an e-commerce and facilities-based automotive retailer in the United States, today provided an update on its recapitalization, finance and acquisition closing timing.
Sam Tawfik, LMP’s Chief Executive Officer, stated, “As previously announced on October 6, 2021, we acquired a Chrysler Dodge Jeep Ram Dealership in New York.
With our announced acquisitions under contract, we are working toward financing the exciting growth at LMP. We plan to fund these acquisitions through a combination of cash, debt financing and equity prior to closing the remaining acquisitions. We are working with our lender group to provide the necessary debt financing to consummate these acquisitions. We anticipate closing on announced acquisitions on a rolling basis, subject to customary closing conditions and manufacturer approvals. Given the frequency of acquisitions in our sector burdening the workload at certain manufacturers and vendors, along with the upcoming holidays this quarter, some of the acquisition closings are expected to be delayed until the first quarter of 2022.
When these transactions are consummated, we believe that we can deleverage during 2022, given the highly accretive nature of the deals combined with strong free cash flow generation.
We maintain full confidence in the execution of our growth strategy, and we will provide a further update during our third quarter earnings call on November 15th 2021.”
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.
