Business
Envirotech Vehicles and Maddox Defense Inc. Enter into a Term Sheet for Proposed Business Combination
OSCEOLA, AR / ACCESSWIRE / April 12, 2023 / Envirotech Vehicles, Inc. (NASDAQ:EVTV), a provider of new zero-emission, purpose-built electric vehicles ("EVTV"
About this update from Envirotech Vehicles, Inc.
[{"type":"text","content":"OSCEOLA, AR / ACCESSWIRE / April 12, 2023 / Envirotech Vehicles, Inc. (NASDAQ:EVTV), a provider of new zero-emission, purpose-built electric vehicles (\"EVTV\" or \"Envirotech\"), announced today that it has signed a Term Sheet (\"Term Sheet\") regarding a potential business combination transaction pursuant to which Maddox Defense Inc., (\"Maddox\") a prominent prime federal government contractor, supplier, and manufacturer would become a majority-owned subsidiary of EVTV in exchange for shares of Envirotech common stock and a promissory note (the \"Proposed Transaction\"). Upon completion of the Proposed Transaction, it is contemplated that the stockholders of Maddox would hold approximately 46% of the total outstanding shares of common stock 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. It is expected that Maddox will continue to perform on its existing government contracts and to deliver accretive top-line revenue while selling EVTV vehicles through its government infrastructure sales vertical.Phillip Oldridge, Chief Executive Officer 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.\"Jason Maddox, CEO of Maddox, also spoke about the acquisition: \"We believe that Envirotech Vehicles and Maddox together can provide innovative solutions to the challenges that our country faces in the transportation and infrastructure sectors. Our pivot towards electric vehicles reflects our commitment to meeting the evolving needs of our customers and positioning ourselves for long-term growth. We recognize that sustainable transportation solutions are becoming increasingly important to the government and commercial markets, and we believe that by integrati...