Envirotech Vehicles, Inc. (NASDAQ:EVTV) stock rose Tuesday after the company penned an Amended and Restated Letter of Intent (LOI) with AZIO AI Corporation under which EVTV would acquire 100% of AZIO AI’s outstanding equity through a merger.
Details
Subject to a definitive agreement, the parties have outlined a non-binding framework valuing AZIO AI at $480 million, using a reference price of $3.00 per EVTV common share.
Under the LOI, AZIO AI would become a wholly owned subsidiary of EVTV, potentially shifting EVTV’s focus toward advanced AI infrastructure and high-performance computing.
The transaction would be a statutory merger in which a new EVTV subsidiary merges into AZIO AI, with AZIO AI surviving as a wholly owned EVTV subsidiary.
AZIO AI shareholders would receive EVTV equity, and any outstanding AZIO AI options, warrants, or other equity-linked instruments would be converted into EVTV equity under terms to be finalized in the definitive agreement.
The LOI also stated that AZIO AI CEO Chris Young would become EVTV’s CEO at closing, and includes standard exclusivity and no-shop provisions requiring EVTV to suspend discussions with other potential acquisition partners during due diligence.
The transaction is subject to a definitive agreement, completion of due diligence, regulatory approvals, board and shareholder approvals, and other customary closing conditions.
EVTV Chief Operating Officer Elgin Tracy said the LOI represents a “disciplined and deliberate approach” to the company’s strategic evolution, adding that the proposed transaction would position EVTV alongside a scaled AI infrastructure platform, seasoned technology leadership, and a governance framework aimed at long-term execution and shareholder value creation.
EVTV Price Action: Envirotech Vehicles shares were up 49.77% at $0.57 during premarket trading on Tuesday, according to Benzinga Pro data. The stock has lost roughly 99% of its value over the past five years.
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