LMP Automotive Holdings, Inc. Announces the Acquisition of 9 Southeast Dealerships Including 10 New Vehicle Franchises
01 September 2020 - 10:00PM
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 for or finance pre-owned and new
automobiles, today announced the acquisition of 9 Southeast
Dealerships Including 10 New Vehicle Franchises.
Richard Aldahan, the Company’s Chief Operating Officer
stated,
"We are thankful to both the LMP and our counter party employees
and professionals who have worked tirelessly over the last few
months on this transaction. The talent inboth organizations and the
resilience of our business model will put us in aposition to become
a stronger and more diversified company. I am pleased
towelcome all our new future colleagues and look forward to working
and growing together as we roll-out our hybrid e-commerce home
delivery, site-to-store, and ship-from-store delivery
strategies."
Aldahan concluded,
“The operating assets to be acquired include an 85%
interest in 5 new vehicle franchises and 3 pre-owned centers, all
of which are located in the attractive West Virginia market, as
well as a 100% interest in 4 new vehicle franchises in the
Tennessee market: 1 Subaru,1 Hyundai, 1 KIA, 2 Chevrolet, 2 GMC, 1
Cadillac, and 2 Buick. These clustered locations combined with our
current operations and previously contracted acquisition provide
for reconditioning, service, logistical and fulfillment
efficiencies which are important cost saving components in
e-commerce, sales and distribution. With these and our previously
announced acquisition, including our current operations, we expect
to have approximately 2,000 vehicles exposed and available online
on our platform to our customers”
Sam Tawfik, the Company's Chairman and Chief Executive Officer
stated, “We are excited to expand our fulfillment footprint in this
Eastern United States region which is in line with our hybrid
e-commerce and dealership clustering strategy. We are looking
forward to enabling our subscription and e-commerce technology over
these dealer platforms in order to further expand our online
fulfillment presence and add to their historical success.”
Mr. Tawfik also added,
“As we have mentioned previously, we are seeing a robust
acquisitions market and have a pipeline of prespective acquisitions
that we are in active negotiations with. We intend to continue to
build our pipeline of prospective dealership acquisitions and
intend on accelerating our acquisition strategy moving forward. LMP
plans on adding 30 to 40 dealerships in 2021 that could contribute
$5 to $7 per share in additional net income, expand our e-commerce
fulfillment presence, provide efficiencies as well as increase our
inventory exposed in our lmpmotors.com online store.”
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 at
fleet rates. We “Subscribe” to our customers by allowing them to
enter into our subscription plan for automobiles in which customers
have use of an automobile. Our subscription plans offer the
flexibility to 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.
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
executive 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; 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.
John Mattio
President and Founder
Lamnia International
(203) 885-1058
jmattio@lamniacom.com
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