Benzinga | Oct 29, 2021 04:02PM EDT

LMP Auto Gives Update On Its Recap, Finance, Acquisition Closing Timing

LMP Automotive Holdings, Inc. (NASDAQ:LMPX), an e-commerce and facilities-based automotive retailer in the United States, today provided an update on its recapitalization, finance and acquisition closing timing.

Sam Tawfik, LMP's Chief Executive Officer, stated, "As previously announced on October 6, 2021, we acquired a Chrysler Dodge Jeep Ram Dealership in New York.

With our announced acquisitions under contract, we are working toward financing the exciting growth at LMP. We plan to fund these acquisitions through a combination of cash, debt financing and equity prior to closing the remaining acquisitions. We are working with our lender group to provide the necessary debt financing to consummate these acquisitions. We anticipate closing on announced acquisitions on a rolling basis, subject to customary closing conditions and manufacturer approvals. Given the frequency of acquisitions in our sector burdening the workload at certain manufacturers and vendors, along with the upcoming holidays this quarter, some of the acquisition closings are expected to be delayed until the first quarter of 2022.

When these transactions are consummated, we believe that we can deleverage during 2022, given the highly accretive nature of the deals combined with strong free cash flow generation.

We maintain full confidence in the execution of our growth strategy, and we will provide a further update during our third quarter earnings call on November 15th 2021."