Company to Focus on Licensing Technology and Canadian Growth
TORONTO, Oct. 27, 2025 /CNW/ - E Automotive Inc. ("EINC" or the "Company"), a leader in automotive wholesale solutions offered under the brands EBlock, EDealer and Cars.ca, today announces the divestment of certain non-core US assets including its New Orleans and Houston physical auctions by way of an asset purchase agreement between the Company's US subsidiary and subsidiaries of America's Auto Auction Group ("Purchasers"), whereby the Purchasers will acquire the Company's US subsidiary's automotive auction assets in New Orleans, Louisiana and Houston, Texas for the aggregate cash consideration of approximately $11M,subject to customary purchase price adjustments. The asset purchase agreement is subject to customary terms and conditions and is expected to close on or around October 30, 2025.
The sale of certain US Assets enables the Company to focus and expand its strong market position within the Canadian automotive industry and capitalize on opportunities presented by the evolving wholesale market due to industry consolidation. The Company will continue to focus on investing in licensing and partnership opportunities in both the US and Canada.
"This divestment marks a pivotal moment for our U.S. teams and auctions, ensuring their future growth and enabling them to thrive," stated Lisa Scott, EBlock President. "It allows us to intensely focus on licensing and innovation. We are confident that by concentrating our resources, we can further strengthen our leadership in Canada and provide additional solutions and value to dealer and commercial partners through our integrated Land-Meets-Tech and Retail-Meets-Wholesale strategies, which include the ongoing expansion of EDealer and Cars.ca."
The strategic shift will enable EBlock to:
- Focus on Canada as a high-growth, profitable market: Investing in operational efforts to accelerate expansion and innovation in Canada.
- Enhance integrated offerings: Further develop its Land-Meets-Tech and Retail-Meets-Wholesale platforms, linking EBlock with EDealer and advancing its consumer-facing brand, Cars.ca.
- Simplify operational processes: Streamline operations to improve efficiency and reduce complexity across the organization.
- Further develop and scale its auction operating system, EOS, for future licensing and whitelabel partnerships.
This divestment does not signal a full withdrawal from the U.S. market. The EBlock Flint, Michigan location will continue to operate as a strategic import/export market, broadening inventory for both U.S. and Canadian customers, including those in the fleet, lease, and commercial sectors. Further, EBlock remains committed to its leading technology and will pursue U.S. partnerships and licensing opportunities. Currently, MAG Now, McConkey Auction Group's digital auctions, are running exclusively on EBlock's platform; additionally, the group has adopted EBlock's LiveAuctioneer and LiveLanes technology, which enables them to sell vehicles in both physical and digital lanes during a single auction event.
"We believe our technology is at the forefront of the industry, and we see significant potential for collaboration and licensing our technology across North America in the future," added Jason McClenahan, EINC CEO. "We are excited about the future as we continue to innovate and deliver cutting-edge solutions to the automotive industry."
About EINC
EINC's mission is to optimise the online vehicle buying, selling, and management experience for automotive dealers and consumers. EINC has a digital platform (the "Platform") that provides automotive dealerships with access to an online wholesale auction marketplace where they can purchase or sell vehicles to other dealers, as well as access innovative software solutions to support dealers' digital retailing and inventory management. Access to EINC's Platform is complemented by ancillary service offerings to assist dealers with supplementary auction-related needs, including driving consumer traffic to their digital properties and optimising other business processes. EINC.'s digital wholesale marketplace goes to market under the brand EBlock, and EINC's digital retail suite of products goes to market under the brand EDealer.
About EBlock:
EBlock is a leading digital automotive wholesale platform dedicated to transforming the way vehicles are bought and sold. With a focus on innovation and customer success, EBlock provides seamless and efficient solutions for dealerships across North America.
Cautionary Statement Regarding Forward-Looking Information
This news release contains forward-looking information that reflects the current expectations of management about the future results and opportunities for EINC and its subsidiaries. Forward-looking statements generally can be identified by words such as "will", "expects", "anticipates", "intends", "plans", "believes", "estimates", "prospects", "continues", or similar expressions suggesting future outcomes or events. More particularly and without limitation, this press release contains forward-looking statements and information concerning the closing of the disposition of the New Orleans, Louisiana and Houston, Texas assets, the development of the Land-Meets-Tech and Retail-Meets-Wholesale platforms, the licensing opportunities related to the Company's or its subsidiaries' solutions,the Company's future positioning, including in the evolving wholesale landscape vision of the market, scaling of the business on its existing cost base, future business prospects and potential. Such forward-looking statements reflect EINC's current beliefs and are based on information currently available to management, and EINC cannot give any assurances that these statements will prove to be correct. Although EINC believes that the expectations and assumptions on which such forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements. By its nature, forward-looking information is subject to various risks and uncertainties (including those risks outlined in EINC's most recent audited annual financial statements which can be found under the Company's profile at www.sedarplus.com), which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date hereof and to not use such forward-looking information for anything other than its intended purpose. The forward-looking information and statements included in this news release are made as of the date of this news release. EINC undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
SOURCE EBlock Inc
Media Contact: Michelle Besaw, Vice President, Marketing and Communications | [email protected] | 802-324-3049
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