Envirotech Vehicles, Inc. (NasdaqCM:EVTV) signed a term sheet to acquire 52% stake in Maddox Defense, Inc. on April 12, 2023. Under the terms of the term sheet, Envirotech Vehicles, Inc. will pay consideration in cash, share exchange and a promissory note in the principal amount of $11.4 million. Post acquisition, All holders of Maddox will hold shares of common stock of EVTV representing approximately 46% of the total outstanding shares of common stock of EVTV.

Certain Maddox's employees will join EVTV. The board of directors of EVTV is expected to be comprised of nine members, three of whom shall be recommended by Maddox. The transaction is subject to the completion of a due diligence review by each party, negotiation of definitive agreements, EVTV to complete specified capital raises by certain dates and Maddox's total assets to include at least nine (9) months of operational cash reserves.