Why EVTV Stock Doubled Today On This Nvidia GPU Purchase Order

• Highlighting the transaction details, Azio stated that it expects to receive a deposit equal to 30% of the deal’s value over the next few weeks.
• The company added that it is currently in talks for multiple other government-led initiatives in Southeast Asia.
• These talks, currently in active development, represent up to $200 million in potential incremental revenue, the company said.

Envirotech Vehicles Inc. (EVTV) shares more than doubled in Monday’s pre-market trade, soaring over 127% after its merger partner, Azio AI, announced that it has received a major purchase order from a government in Southeast Asia.

Azio AI stated that, under the terms of the deal, the company will fulfill a $107 million contract by delivering 256 units of Nvidia Corp.’s (NVDA) B300 GPUs.

Retail sentiment on Stocktwits around Envirotech Vehicles edged up over the past 24 hours, hovering in the ‘bullish’ territory at the time of writing, while message volume was at ‘high’ levels.

Details Of The Deal

Highlighting the transaction details, Azio stated that it expects to receive a deposit equal to 30% of the deal’s value over the next few weeks.

The company added that it is currently in talks for multiple other government-led initiatives in Southeast Asia. These talks, currently in active development, represent up to $200 million in potential incremental revenue, the company said.

This follows a relatively smaller contract that the company executed earlier, delivering eight Nvidia B200 GPUs worth $2.8 million.

“Delivering approximately $100 million in contractual revenue from a complex regional program demonstrates our ability to deploy secure, mission-critical AI infrastructure at scale,” said Azio AI’s co-CEO, Chris Young.

Envirotech’s Merger Framework With Azio AI

Last week, Envirotech announced that it had entered into an Amended and Restated Letter of Intent (LOI) with Azio AI. According to the framework, Envirotech would acquire Azio’s 100% issued and outstanding equity interests through a merger transaction.

The LOI ascribes an enterprise value of $480 million to Azio, at $3 per share. It is still in its preliminary phase and does not create any obligation on behalf of either of the two companies, Envirotech stated.

However, if the deal is executed, a newly formed subsidiary of Envirotech would merge with Azio AI. Following this, the latter would become a wholly-owned subsidiary of Envirotech.

EVTV stock is up 29% year-to-date, but down 96% over the past 12 months.

Also See: ABVX Soars Pre-Market On Reports Of $17.5 Billion Eli Lilly Takeover Interest

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