EVTV - Envirotech Vehicles and Maddox Defense to combine business

2023-04-12 09:04:17 ET

• Envirotech Vehicles ( NASDAQ: EVTV ) signed a term sheet for a potential business combination transaction pursuant to which Maddox Defense, a prime federal government contractor, supplier, and manufacturer.

• Upon completion of the proposed transaction, it is contemplated that the stockholders of Maddox would hold ~46% of the total outstanding shares of Envirotech.

• It is expected that Maddox will continue its independent operations, subject to a cash sharing arrangement with EVTV, after the closing of the Proposed Transaction.

• EVTV to acquire a majority stake in Maddox through a share exchange and cash transaction whereby shares of common stock of EVTV and a promissory note in the principal amount of ~$11.4M will be exchanged for 52% of the shares of common stock of Maddox Defense.

• Phillip Oldridge, CEO of Envirotech, commented: "This transaction will not only allow us to expand our capabilities to offer American made, zero-emission vehicles, but also positions us to be a go-to provider for the federal government's growing demand for sustainable transportation solutions. This combination aligns with our vision of building a strong presence in the government contracts sector and providing domestically manufactured products. We believe Maddox's experience in government trucking and logistics and its established customer base will provide a significant advantage for us in expanding our business in the sector."

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