FORT LAUDERDALE, Fla. – LMP Automotive Holdings, Inc. (NASDAQ: LMPX) (“LMP” or the “Company”), an e-commerce and facilities-based automotive retailer in the United States, 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.”