TLDR
- Envirotech Vehicles (EVTV) soared 442% Monday to close at $2.51 before climbing to $3.16 in extended trading.
- The company signed a letter of intent to acquire Azio AI in stock merger using $3 per share reference price.
- Azio AI landed binding $107 million purchase order for 256 Nvidia B300 GPUs from Southeast Asian government.
- The transaction would shift Envirotech from electric vehicle production to AI infrastructure business.
- Annual shareholder meeting set for January 20 will determine if proposed deal moves forward.
Envirotech Vehicles posted massive gains Monday. The stock finished at $2.51, representing a 442% jump.
Envirotech Vehicles, Inc., EVTV
Volume exploded to 761 million shares during the session. That’s far above typical trading activity for the company.
Extended trading pushed shares even higher. The stock reached $3.16 after the closing bell.
Two announcements drove the rally. First, Envirotech revealed plans to acquire Azio AI through a stock merger.
The proposed transaction uses a $3 reference price per EVTV share. That implies a $480 million enterprise value for Azio AI.
Second, Azio AI disclosed a major contract win. The company secured a binding order worth $107 million.
AI Infrastructure Takes Center Stage
The purchase order covers 256 Nvidia B300 GPUs. These processors power artificial intelligence applications and model training.
A government in Southeast Asia placed the order. Azio expects to collect a 30% deposit in the coming weeks.
Chris Young serves as co-chief executive at Azio AI. He said the contract demonstrates the company’s capabilities in deploying mission-critical AI infrastructure.
Azio also identified future opportunities. Regional government programs could produce up to $200 million in extra revenue.
Those deals haven’t been finalized. But the potential pipeline adds to investor optimism about growth prospects.
The merger would fundamentally change Envirotech’s business model. Right now, the company manufactures electric buses and vans.
After closing, it would operate as an AI infrastructure provider. That transformation attracted speculative traders Monday.
Technical Picture Shows Momentum
Envirotech carries a market cap below $10 million. The proposed contracts significantly exceed that valuation.
Monday’s price action broke through key technical levels. Shares pushed above their 50-day, 100-day, and 200-day moving averages.
The stock traded in a wide range from $1.01 to $2.62. Such swings are common for penny stocks on breaking news.
The 50-day relative strength index reads around 59. That indicates room for additional upside before reaching overbought territory.
Envirotech trades at 0.3x sales based on current metrics. No Wall Street analysts cover the stock.
That absence means institutional investors typically avoid the name. Individual traders must conduct their own due diligence.
Vote Coming Next Week
Shareholders will meet on January 20 at 9:00 a.m. Pacific Time. The annual meeting was postponed earlier due to insufficient quorum.
Votes must be submitted by January 19 at 11:59 p.m. Eastern Time. The outcome determines whether the Azio transaction advances.
The current agreement remains non-binding. That means price, structure, and timing could all change.
The deal could also collapse entirely. Chief Operating Officer Elgin Tracy called the approach disciplined and deliberate.
Multiple risks face investors at current prices. The $107 million order must convert to real cash.
Additional contracts require finalization before generating revenue. And the merger agreement needs binding documentation.
The January 20 shareholder meeting represents the critical next step for this transaction.
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