LMP Automotive Holdings Inc. has misplaced a greater than $2 million deposit after its deal to buy an 85 percent stake in 10 franchised dealerships in Florida was terminated final month.
The publicly traded Fort Lauderdale, Fla., firm, in a Wednesday regulatory filing, stated vendor Alan Wildstein “was entitled to retain earnest cash deposits” totaling $2,000,500 as a result of asset buy agreements have been terminated Feb. 16.
Wildstein declined to remark.
It marks the second seven-figure deposit the group has forfeited in current months amid acquisition offers falling by. In that deal, LMP misplaced a $1.5 million deposit after its plan to purchase 5 import dealerships in Texas from Steve McGavock was terminated Jan. 31.
Final month, LMP stated it planned to cancel its pending dealership acquisitions as a result of it was unable to acquire financing to pay for them. No less than one other of LMP’s seven pending offers has been terminated, for Chantz Scott Chrysler-Dodge-Jeep-Ram in Greeneville, Tenn.
In that deal, LMP had paid a $250,000 deposit, which Chantz Scott, CEO of Chantz Scott Auto Group, instructed Automotive Information he believes he is entitled to. Scott, in an electronic mail Thursday, stated he hasn’t obtained the deposit. In a Feb. 17 regulatory submitting saying the canceled deal, LMP stated it “didn’t incur any materials termination penalties pursuant to such termination.”
LMP additionally introduced in a Feb. 18 regulatory filing that its proposed acquisition of property in Elmsford, N.Y., for $29 million was terminated and that the corporate additionally “didn’t incur any materials termination penalties pursuant to such termination.”
LMP, with eight franchised dealerships and 4 used-vehicle shops, additionally stated final month it was exploring strategic choices together with a potential sale of the corporate.
LMP shares have been down 2.eight % to $4.21 in noon buying and selling Thursday.
In September, LMP stated it deliberate to purchase the bulk stake in Alan Jay Automotive Community, of Sebring, Fla. It deliberate to pay $50 million for the dealerships’ goodwill and about $44.1 million for actual property. That transaction additionally was to incorporate a used-car middle and a fleet operations outlet.
