LMPX Lmp Automotive
LMP Announces the Acquisition and Closing of a Majority Interest in LTO Holdings, LLC in a Cash and Stock Deal Through LMP’s Wholly-Owned Subsidiary, LMP Finance, LLC
March 9, 2021
FORT LAUDERDALE, FL / GLOBE NEWSWIRE / March 9, 2021/ LMP Automotive Holdings, Inc. (NASDAQ: LMPX), an e-commerce and facilities-based automotive retailer in the United States, today announced the acquisition and closing of a majority interest in LTO Holdings, LLC (“LTO”) in a cash and stock deal through LMP’s wholly-owned subsidiary, LMP Finance, LLC.
|○||Expands LMP’s e-commerce sales and subscription-leasing programs and fulfillment in the Northeast market, one of the nation’s most desirable markets|
|○||Adds profitable and cost-efficient reconditioning and collision center in region|
|○||Expands the company’s logistics and fulfillment footprint and free delivery radius|
|○||Strong, stable margins and immediately accretive to earnings|
|○||LMP will acquire a 51% interest in LTO in exchange for a contribution of $225,000 as working capital to LTO and $225,000 in cash to the selling stakeholders, along with 16,892 shares of LMP’s unregistered common stock with a floor price $37 and a true-up after the lapse of Rule 144 holding period|
Sam Tawfik, LMP’s Chairman and Chief Executive Officer, stated “We look forward to working with LTO’s seasoned, forward-thinking and trend-setting management team. We have already integrated our cloud-based shared network environment with LTO’s existing network environment. This enables LTO and LMP to have access to each other’s inventory, in addition to benefitting from both our backend and consumer facing e-commerce technology and applications. We continue to see extraordinary demand for our subscriptions and flexible leasing offerings, which we expect will continue to grow substantially in the coming years.”
Mr. Tawfik concluded “This partnership expands our inventory on our proprietary e-commerce platform as well as our sales and fulfillment footprint in one of the fastest growing regions in the United States. Importantly, we will also have a more cost-efficient e-commerce fulfillment, reconditioning, and service capacity network. This also increases our vehicle storage capacity by approximately 350 units, which enables us to expand our sales. Our e-commerce systems are already synchronized with LTO’s inventory and we intend to significantly expand moving forward.”
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.
LMP Automotive Holdings, Inc.
500 East Broward Boulevard, Suite 1900
Fort Lauderdale, FL 33394
For more information visit: https://lmpmotors.com/.
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SOURCE: LMP Automotive Holdings, Inc.