LMP taps BofA Securities to explore options

LMP Automotive Holdings Inc., which this month fired its CFO, plans to sell a Stellantis dealership in New York and has hired BofA Securities to help it seek strategic options for its auto retail business.

The small publicly traded Fort Lauderdale, Fla., retailer disclosed July 15 that it had signed an agreement to sell its Chrysler-Dodge-Jeep-Ram dealership in White Plains, N.Y., and said the sale was expected to generate $15.8 million. The transaction is expected to close in October.

LMP is selling the store to TAG Holdings of Rhode Island, according to a regulatory filing last week. TAG Holdings' incorporation documents have the same address as Tasca Automotive Group in Cranston, R.I. BofA Securities is the broker for the deal.

In February, LMP said it was exploring strategic alternatives for its business including a possible sale of the company. It also announced it would terminate seven pending acquisitions because it was unable to secure financing to pay for them.

LMP bought an 85 percent stake in White Plains Chrysler-Dodge-Jeep-Ram in October, paying $6.3 million in cash and 55,134 shares of its stock. LMP said in April 2021 that it would pay $10 million to buy that store.

In addition to the Stellantis dealership, LMP has seven other franchised dealerships and several used-vehicle stores in its portfolio.

The retailer said this month that the rest of its real estate appraised for about $50 million and estimated its property and dealerships, including the Stellantis store under contract, are worth about $104 million.

"We believe that our stock price does not reflect net asset value of our company and continue to seek strategic options to maximize shareholder value and we have engaged BofA Securities to assist us in the process," the company said in a July 15 news release.

LMP's stock had traded at more than $20 a share within the past year but had fallen to about $5.64 a share last week.

LMP said it also sold property in Plantation, Fla., last month for about $4 million, according to a July 1 regulatory filing.

LMP, in a separate regulatory filing last week, said it terminated the employment of CFO Robert Bellaflores on July 14. The retailer said it has started a search to replace Bellaflores, who was named CFO in July 2021.

It marks the second short CFO tenure for LMP. Previous finance chief Evan Bernstein left the position after about eight months.

LMP hasn't reported financial results for the fourth quarter of 2021 or the first quarter of this year and has said it will restate financial results for the first three quarters of 2021. The company also faces a possible class-action lawsuit and has filed lawsuits seeking the return of deposits it made for dealership acquisitions it later terminated.

LMP said CEO Samer Tawfik will serve as interim CFO until a replacement is named.