LMP Announces Closing of Hometown Subaru Acquisition

Rhea-AI Summary

LMP Automotive Holdings, Inc. (NASDAQ: LMPX) has completed the acquisition of Hometown Subaru, located in Mt. Hope, West Virginia. This acquisition marks approximately 97% of the expected EBITDA contribution from its Stage One agreements. LMPX plans to finalize one more acquisition in West Virginia and two Chrysler Jeep Dodge Ram dealerships in New York by Q3 2021. The company aims to consolidate automotive dealership groups in the U.S., leveraging e-commerce and logistics to enhance customer experience and operational efficiency.

Positive

• Completed acquisition of Hometown Subaru, contributing to business growth.
• Achieved about 97% of expected EBITDA contribution from Stage One acquisitions.
• Plans to finalize one additional acquisition in West Virginia and expand into New York.

Negative

• Dependence on external financing for operations.
• Risks related to maintaining market acceptance and competition challenges.

FORT LAUDERDALE, FL , May 06, 2021 (GLOBE NEWSWIRE) -- LMP Automotive Holdings, Inc. (NASDAQ: LMPX), an e-commerce and facilities-based automotive retailer in the United States, today announced the closing of its acquisition of Hometown Subaru.

The Subaru franchise is located at 117 Midtown Avenue, Mt. Hope, West Virginia 25880.

Hometown Subaru is a part of our Stage One acquisition agreements, of which to date we have consummated approximately 97% of the expected EBITDA contribution contracted in Stage One. In the coming weeks, we expect to close the one remaining contracted Stage One acquisition in West Virginia. We expect to close the two contracted acquisitions of Chrysler Jeep Dodge Ram dealerships in New York in the third quarter of this year.

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, and along with strategically building out dealership networks, creates personal transportation solutions that consumers desire.

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.

FAQ

What is the impact of LMPX's acquisition of Hometown Subaru?

The acquisition contributes significantly to LMPX's EBITDA and supports its growth strategy in the automotive retail sector.

When does LMPX plan to complete its next acquisitions?

LMPX expects to finalize one more acquisition in West Virginia and two Chrysler Jeep Dodge Ram dealerships in New York by Q3 2021.

What percentage of the EBITDA contribution has LMPX achieved from Stage One acquisitions?

LMPX has completed approximately 97% of the expected EBITDA contribution from its Stage One acquisition agreements.

What are the future plans of LMPX after the acquisition of Hometown Subaru?

LMPX plans to continue consolidating dealership groups and expanding its geographical footprint while enhancing its e-commerce capabilities.