Envirotech Vehicles and Maddox Defense Entered into a Term Sheet for Proposed Business Combination

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.