LMP Automotive to promote Stellantis dealership, hires BofA because it seeks ‘strategic choices’; CFO terminated
LMP Automotive Holdings Inc. stated it’ll promote its Stellantis dealership in New York, which it expects will generate $15.8 million.
The publicly traded Fort Lauderdale, Fla., auto retailer stated Friday that it has signed an settlement to promote its Chrysler-Dodge-Jeep-Ram retailer in White Plains, N.Y. The transaction is predicted to shut in October. LMP didn’t instantly launch the identify of the customer.
In February, LMP said it was exploring strategic alternatives for its enterprise together with a doable sale of the corporate, because it introduced it might terminate seven pending acquisitions as a result of it was unable to safe financing to pay for them and to shut the offers underneath contracted time frames.
LMP bought an 85 percent stake in White Plains Chrysler-Dodge-Jeep-Ram in October. It has seven different franchised dealerships in its portfolio.
The retailer stated final week that the remainder of its actual property appraised for about $50 million and that it believes its property and dealerships, together with the Stellantis retailer underneath contract, are value about $104 million.
“We imagine that our inventory worth doesn’t mirror web asset worth of our firm and proceed to hunt strategic choices to maximise shareholder worth and we’ve engaged BofA Securities to help us within the course of,” the corporate said in a news release.
LMP’s stock was buying and selling at $5.55 a share about 2:45 p.m. Monday. It had been buying and selling at greater than $20 a share throughout the previous yr.
Final month, LMP stated it additionally bought property in Plantation, Fla., for about $4 million, according to a regulatory filing.
LMP hasn’t reported monetary outcomes for the fourth quarter of 2021 and first quarter of this yr and has stated it’ll restate monetary outcomes for the primary three quarters of 2021. The corporate additionally faces a doable class-action lawsuit, and has filed lawsuits looking for the return of deposits it made for acquisitions that it terminated.