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Envirotech Vehicles , Inc. (NASDAQ:EVTV), a Delaware-based company specializing in motor vehicle parts and accessories, has entered into a supplemental agreement with YA II PN, Ltd., securing an additional $5 million in funding. The agreement, effective as of Monday, amends the existing standby equity purchase agreement to include the advancement of funds through convertible promissory notes. According to InvestingPro data, EVTV currently trades at $0.34 per share with a market capitalization of $5.9 million, and analysis suggests the stock is currently undervalued.
The first tranche of $3 million was disbursed today, with net proceeds of approximately $2.7 million after discounts and fees. The second tranche, amounting to $2 million, is contingent upon stockholder approval for the issuance of shares exceeding the Exchange Cap. These convertible promissory notes, bearing an interest rate of 5% annually, will mature on March 9, 2026, with an option for extension by the investor. InvestingPro analysis reveals the company maintains a healthy current ratio of 3.43, indicating strong ability to meet short-term obligations despite recent financial challenges.
The conversion price of the notes is set to the lower of $1.00 per share or 93% of the lowest daily VWAP in the five days preceding conversion, with a floor price of $0.0713 per share. The maturity date for an initial note issued on October 31, 2024, has also been extended to March 9, 2026, and its Floor Price adjusted to $1.00.
The supplemental agreement and the issuance of additional notes are part of Envirotech Vehicles’ efforts to secure financing under the amended standby equity purchase agreement. The issuance is based on the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933.
As disclosed in the SEC filing, the company reported having approximately $3,000,000 in cash on hand and a monthly burn rate of about $600,000 as of February 5, 2025. This financial move is aimed at bolstering the company’s capital and supporting its operational requirements.
This article is based on a press release statement.
In other recent news, Envirotech Vehicles, Inc. has announced significant changes in its executive team. The company disclosed the resignation of its Chief Financial Officer, William C. Miller, effective immediately, with Jason Maddox appointed as the Interim CFO. Maddox will continue to serve as President of the company while assuming his new responsibilities without additional compensation. In a related development, Franklin Lim, the current CFO, will step down by the end of the year due to health reasons, and William C. Miller will take over as the new CFO starting January 1, 2025. Miller brings over 25 years of experience in accounting and finance and will receive an annual base salary of $150,000, along with stock options. Envirotech Vehicles recently acquired Maddox Industries, resulting in Jason Maddox receiving approximately 3.1 million shares of the company’s common stock. This executive shuffle occurs as Envirotech Vehicles continues to navigate the competitive automotive parts industry. The information regarding these changes was disclosed in recent press releases and SEC filings.
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