LMP Announces $20 Million Private Placement
Pryor Cashman client LMP Automotive Holdings, Inc. (NASDAQ: LMPX) (“LMP”), recently announced a $20 million private placement of preferred stock and warrants. ThinkEquity acted as the placement agent. According to the press release:
LMP intends to use the proceeds to drive growth, including closing on its Stage 1 Acquisitions, which are expected to begin closings in the first week of March, and for working capital purposes.
LMP will issue and sell 20,100 shares of a newly created series of Series A Convertible Preferred Stock (the “Preferred Stock”) in a privately negotiated transaction exempt from registration under Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), and the rules and regulations promulgated thereunder. The Preferred Stock will be convertible into shares of LMP’s common stock at an initial conversion price of $17.50 per share. The Investors will also receive warrants (the “Warrants”) to purchase 861,429 shares of LMP’s common stock at an exercise price of $21.00 per share. The private placement is subject to customary closing conditions.
LMP was represented by partners David C. Rose, Ali Panjwani, with assistance from Eric J. Wisotsky.
Learn more about the announcement in the below link.
