Following the announcement LMP Automotive Holdings Inc.'s surprise announcement to pursue sale of the company in February, the company says it is now working on the process of terminating pending acquisitions.
The hits keep coming for LMP Automotive Holdings Inc. According to Automotive News, the company, which announced back in February it would be selling the company is now announcing plans to sell a New York dealership and has hired BofA Securities to provide strategic plans for the auto retail business.
“The company intends to terminate all of its pending acquisitions in accordance with the terms of their respective acquisition agreements, primarily due to the inability to secure financial commitments and close within the timeframes set forth in such agreements,” LMP’s CEO Sam Tawfi said in a statement.
On July 15, the Fort Lauderdale retailer closed its doors of the Chrysler-Dodge-Jeep-Ram dealership in White Plains, New York that is scheduled to close for $15.8 million in October. The company also announced the termination of its CFO Robert Bellaflores on July 14.
LMP will be selling its store to TAG Holding of Rhode Island. Documentation shows that the address of the acquisition matches that of Tasca Automotive Group in Cranston, Rhode Island with BofA Securities serving as the broker for the deal.
The company had previously purchased the White Plains dealership in October for $6.3 million in cash and 55,134 shares of its stock. The company has also had to stop other pending acquisitions, being unable to secure financing to complete the deals.
LMP Automotive Holdings, Inc. first announced it would be selling the company in February after its board of directors approved "an immediate pursuit of strategic alternatives including a sale of the company," a company press release said.
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