Benzinga | Jul 26, 2021 01:59PM EDT

LMP Automotive Stock Gains On Acquiring Chrysler Dodge Jeep Ram Dealership In New York

* LMP Automotive Holdings Inc (NASDAQ:LMPX) has entered an acquisition agreement for a Chrysler Dodge Jeep Ram dealership in New York for a purchase price of about $11 million for goodwill and $8.2 million for the associated real estate.

* It expects the deal to add about $2.6 million in adjusted EBITDA or $0.26 per share in 2022.

* "This acquisition will further expand our management team and Northeast footprint," said COO Richard Aldahan.

* It plans to fund the deal through a combination of cash on its balance sheet, $5.6 million in common stock, and debt financing. It held cash and cash equivalents of $19.3 million as of March 31, 2021.

* The deal will close in the fourth quarter of this year.

* Price action: LMPX shares are trading higher by 5.03% at $17.32 on the last check Monday.