AZIO AI And Envirotech Vehicles Announce $480M Business Combination Framework To Focus On AI Infrastructure And Applied AI Systems

Transaction Framework Informed by Independent Third-Party Valuation of Approximately $480 Million

LOS ANGELES, Dec. 18, 2025 /PRNewswire/ -- AZIO AI Corporation ("AZIO AI"), a rapidly scaling AI infrastructure company delivering high-performance compute, modular data-center solutions, and applied AI platforms for governments, institutions, and enterprises worldwide, today provided additional details regarding the previously announced letter of intent ("LOI") outlining a potential business combination with Envirotech Vehicles, Inc. (NASDAQ:EVTV) ("EVTV").

The LOI outlines a transaction framework under which the parties are working toward a potential business combination to which EVTV would acquire 100 percent of the outstanding equity of AZIO AI, subject to the completion of due diligence, the negotiation and execution of definitive agreements, and receipt of all required shareholder and regulatory approvals.

Transaction Framework

Under the framework outlined in the LOI, the proposed transaction is informed by an independent third-party valuation of AZIO AI of approximately $480 million. If completed, AZIO AI is expected to serve as the primary operating entity, repositioning EVTV's long-term strategy to focus on AI infrastructure and applied artificial intelligence systems.

Subject to definitive agreements, AZIO AI's executive leadership team and board of directors, led by Chief Executive Officer Chris Young, are expected to play a central role in guiding the strategic direction of the combined organization. EVTV's existing leadership is expected to continue supporting the Company in executive, board, or advisory capacities to provide continuity, governance oversight, and an orderly transition.

Strategic Rationale

The transaction framework provides support and scalability for AZIO AI's strategic focus on establishing AI infrastructure globally, with particular emphasis on sovereign growth economies in Asia. Global demand for artificial intelligence increasingly centers on access to scalable, capital-efficient compute infrastructure capable of supporting training, inference, and sovereign data requirements.

AZIO AI was built to address this demand through enterprise-grade GPU systems, modular data-center deployments, and flexible AI infrastructure designed to scale across government, institutional, and enterprise environments.

Within this framework, EVTV's drone operations are expected to function as an application-level platform that leverages AI infrastructure rather than defining it. Drone systems generate large volumes of image and sensor data requiring substantial backend compute for processing, analytics, and AI model deployment, providing real-world validation of infrastructure demand.