LMP Automotive Seeks Stockholder Approval For Plan Of Liquidation; Sells Assets

LMP Automotive Holdings Inc LMPX has entered into dealership and real estate asset sale agreements to sell its dealerships in Florida and West Virginia. The terms of the transaction were not disclosed.
The dealerships include Kia, Subaru Corp FUJHF, Chevrolet, Volkswagen AG VWAGY, and General Motors Co GM.
The company anticipates the closing of the sale to occur in October 2022.
The company's board unanimously recommends that at the next Special Meeting of Stockholders, the company's stockholders vote to approve a proposed plan of liquidation of assets and dissolution.
The Plan of Liquidation will allow the LMPX board to sell all of the company's assets, distribute the net proceeds to stockholders and dissolve the company.
"Management believes that upon finalization of the Plan of Liquidation we expect that the Company will be able to distribute approximately $115 million to $126 million to shareholders," said Chairman and CEO Sam Tawfik.
Price Action: LMPX shares closed higher by 2.91% at $6.73 on Friday.