Envirotech Vehicles Inks Business Combination Deal With Federal Government Contractor Maddox - What's On The Cards? - Envirotech Vehicles (NASDAQ:EVTV)

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.