Envirotech Vehicles, Inc. announced a private placement of a convertible promissory note at a price of $1,000,000 in the principal amount of $1,000,000 on January 18, 2024. The transaction included participation from new individual investor Gerald Douglas Conrod. The note will mature on the earlier of the next S-1 filing of the company or September 30, 2024.

On or before maturity, the investor has the right to convert any and all outstanding principal amount into common stock at a per share price equal to the greater of $1.50 and an amount equal to 90% of the per share price at which such shares of common stock close on the Nasdaq stock exchange. The company grants 800,000 warrants to purchase common stock at $1.50 per share, expiring two years from the date of the note. The private placement is exempt from registration under the Securities Act of 1933, as amended.

The company has paid an origination fee of $99,000 as issuance expenses.