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HOUSTON - Envirotech Vehicles, Inc. (NASDAQ:EVTV), a company specializing in electric commercial vehicles currently trading at $0.26 per share, has announced a significant expansion into the drone market with a new agreement to manufacture a heavy lift drone for agricultural use. According to InvestingPro data, the company’s market capitalization stands at $6 million, with analysts anticipating sales growth of 47% in the current year. The move is part of Envirotech’s strategy to diversify its product offerings and enter the unmanned aerial system (UAS) sector.
Under the Consulting and Manufacturing Agreement, the U.S. drone manufacturer will design and construct the drone according to AG Drones Inc., an Envirotech subsidiary, specifications. This electric UAS will be entirely U.S.-made, ensuring compliance with the National Defense Authorization Act due to its lack of reliance on Chinese components.
Jason Maddox, President and Interim Chief Financial Officer of Envirotech, expressed optimism about the new division’s potential to enhance the company’s revenue base in 2025. The agricultural drone, featuring advanced spraying and mapping capabilities, is scheduled for delivery to AG Drones during the second quarter of 2025.
Following the delivery and transfer of intellectual property, Envirotech plans to establish its U.S. drone manufacturing facility, marking a significant step in its commitment to innovation and sustainability in electric transportation solutions. While the company maintains a moderate debt level with a debt-to-equity ratio of 0.18 and sufficient liquidity to cover short-term obligations (current ratio of 1.5), InvestingPro analysis indicates the company is currently burning through cash rapidly.
This announcement comes as part of Envirotech’s broader plan to create an electric drone division, signaling a strategic shift that could rapidly expand its revenue streams beyond land-based commercial vehicles.
Envirotech Vehicles has emphasized its dedication to revolutionizing mobility through electric vehicle technology, and this foray into the UAS market represents a continuation of that vision.
The information regarding Envirotech’s expansion is based on a press release statement. The company has invited business owners and potential strategic partners to learn more about its technology offerings through its new website. For investors seeking deeper insights, InvestingPro offers 14 additional investment tips and comprehensive financial metrics, including detailed valuation analysis and growth forecasts.
Investors and the public should note that forward-looking statements made by the company, including those related to future plans and financial performance, are subject to risks and uncertainties that could cause actual results to differ from expectations. Envirotech has advised caution in relying on these statements, which are based on current management beliefs and expectations.
In other recent news, Envirotech Vehicles, Inc. has secured an additional $5 million in funding through a supplemental agreement with YA II PN, Ltd. This agreement amends the existing standby equity purchase agreement to include convertible promissory notes. The company received the first tranche of $3 million, with net proceeds of approximately $2.7 million after fees. The second tranche of $2 million is pending stockholder approval. Envirotech is also exploring options to regain compliance with Nasdaq’s Minimum Bid Price Requirement, following a notification of non-compliance due to its stock price not maintaining a minimum of $1 over 30 consecutive business days. The company has until September 2, 2025, to meet this requirement. Meanwhile, Envirotech has announced its strategic expansion into the electric drone and watercraft sectors, aiming to diversify its revenue streams. The company anticipates new revenue streams in 2025 from its drone and marine product lines. Additionally, Envirotech launched a newly redesigned website to enhance user experience and provide comprehensive information on its electric vehicle lineup.
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