Exhibit 99.1
ADOMANI® AND ENVIROTECH DRIVE SYSTEMS, INC. ENTER INTO NON-BINDING LETTER OF INTENT FOR PROPOSED BUSINESS COMBINATION
Corona, CA / ACCESSWIRE/ December 24, 2020 / ADOMANI, Inc. (OTCQB: ADOM) a provider of new zero-emission, purpose-built electric vehicles and drivetrain solutions, announced that it entered into a non-binding letter of intent (“LOI”) with Envirotech Drive Systems, Inc. (“EVT”), North America’s first and only manufacturer of purpose-built all-electric zero-emission Class 3, 4 and 5 vehicles, regarding a potential business combination transaction pursuant to which a newly formed subsidiary of ADOMANI would merge with and into EVT, whereby EVT would become a wholly-owned subsidiary of ADOMANI in exchange for shares of ADOMANI common stock (the “Proposed Transaction”). Upon completion of the Proposed Transaction, it is contemplated that the stockholders of EVT would hold approximately 58% of the total outstanding shares of common stock of ADOMANI, subject to certain adjustments.
“This is an exciting development for ADOMANI. The over 30 years of experience and success in the EV industry that the EVT team brings will prove very valuable to ADOMANI as we jointly continue to develop, improve and expand our cutting-edge, technologically-advanced zero-emission all-electric products in service, while reducing the cost of our vehicles and our overhead costs, both of which will benefit our stockholders,” said Phillip Oldridge, Chief Executive Officer of ADOMANI. Mr. Oldridge continued: “In addition, I have a plan to achieve positive results for stockholders by getting our vehicles on the road and in service quickly. Combined with the cost savings, we believe this business combination will provide significant value to our stockholders.”
David Oldridge, Chief Technology Officer of Envirotech Electric Vehicles Inc., the parent corporation of EVT, commented, “The ROI is attractive for medium and heavy-duty electric vehicles. We currently have a number of new multi-platform chassis in the final stage of development, which when added to ADOMANI’s line of purpose-built and ready to deliver all-electric vans and trucks, will expand the current product offerings of ADOMANI’s portfolio of EVs. We expect the ADOMANI/EVT combined entity to have one of the most, if not the most, complete lineup of medium and heavy-duty electric vehicle chassis which can be seamlessly integrated into a variety of heavy duty applications from delivery trucks to garbage trucks, school buses and a variety of other vehicles, supplementing ADOMANI’s existing vehicle line-up of logistic vans, and cab overs.”
Terms of the Proposed Transaction between ADOMANI and EVT as Contemplated by the LOI:
The following is a summary of the key terms of the Proposed Transaction as contemplated by the LOI. The Proposed Transaction remains subject to completion of a due diligence review by each party and negotiation of definitive agreements and the structure may change due to tax or other transaction considerations. There can be no assurance that the parties will agree on the terms of definitive agreements or that the Proposed Transaction will be completed as currently contemplated or at all.
| | • | | ADOMANI to acquire EVT through a share exchange transaction whereby shares of common stock of ADOMANI will be exchanged for shares of common stock of EVT, which exchange shall be effected through a reverse triangular merger transaction involving a newly formed subsidiary of ADOMANI that will merge with and into EVT with EVT surviving the merger as a wholly-owned subsidiary of ADOMANI. |
