Envirotech Vehicles Inks Business Combination Deal With Federal Government Contractor Maddox - What's On The Cards?

  • Envirotech Vehicles Inc EVTV has signed a term sheet for a business combination with the federal government contractor and supplier Maddox Defense Inc. The financial details of the transaction were not disclosed.
  • Under the agreement, Maddox Defense would become a majority-owned subsidiary of EVTV in exchange for shares of Envirotech and a promissory note.
  • EVTV will acquire a majority stake in Maddox through a share exchange and cash transaction whereby shares of common stock of EVTV and a promissory note of $11.39 million will be exchanged for 52% of the shares of common stock of Maddox Defense.
  • On completion of the transaction, the stockholders of Maddox would hold about 46% of the total outstanding shares of Envirotech.
  • Maddox will continue its independent operations, after the closing of the transaction.
  • "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,” said CEO Phillip Oldridge.
  • Envirotech held $4.7 million in cash and equivalents as of September 30, 2022.
  • Price Action: EVTV shares closed higher by 0.06% at $2.92 on Tuesday.
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