PHOENIX, May 09, 2020 (GLOBE NEWSWIRE) -- EVO Transportation & Energy Services, Inc. (EVO) (OTC Pink: EVOA) applied for and received a Paycheck Protection Program loan under the CARES Act in order to help sustain its business during the coronavirus pandemic affecting the country. EVO qualified for the program pursuant to "alternative size standards" explicitly set forth in guidance issued by the U.S. Treasury Department and U.S. Small Business Administration for firms with less than $15 million in tangible net worth and less than $5 million in earnings in each of the past two tax years. The alternative size standards apply regardless of the number of an applicant’s employees.
As an essential service provider to the United States Postal Service and other shipping customers, the payroll funding enabled EVO to continue its operations at a time of financial strain for the company and severe market dislocation in the country. EVO is made up of multi-generational American businesses employing drivers, dispatchers, mechanics and support personnel who have served USPS and other shippers for decades.
EVO received a letter from the Select Subcommittee on the Coronavirus Crisis of the U.S. House of Representatives, apparently because EVO is a public reporting company and received PPP proceeds. However, unlike other companies cited by the Subcommittee, EVO’s stock is highly illiquid and rarely trades, EVO does not have access to capital markets (it sought unsuccessfully in March to raise equity from third parties in a private placement) and presently nearly all of EVO’s investors are unable to sell shares. EVO’s small market float is measured in thousands of dollars, not hundreds of millions of dollars. All of these factors support EVO’s application to the PPP which was consistent with the letter and spirit of the law. EVO has and will continue to use the PPP proceeds for payroll.
EVO is proud of the critical and essential services provided by its workforce which has continued to perform day in and day out delivering all over the country, including in some of the areas hardest hit by the coronavirus pandemic. The PPP proceeds permitted EVO to fulfill its obligations to do this important work. Return of the proceeds could jeopardize EVO’s survival and the more than 1600 jobs that exist through EVO’s continued operation.
EVO is grateful to the U.S. Congress for passing the CARES Act and to the U.S. Treasury and U.S. Small Business Administration for quickly establishing guidelines which specifically authorized firms like EVO to qualify for PPP proceeds.
The statements in this press release that are not historical facts may be “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words “believe,” “will,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “would,” “should,” “plan,” “expect,” “predict,” “could,” “potentially” or similar expressions identify forward-looking statements, although not all forward looking statements include these words. These statements involve known and unknown risks, uncertainties and other important factors, including those described in under “Risk Factors” contained in EVO’s most recent Form 10-K and subsequent filings with the Securities and Exchange Commission. Moreover, the forward- looking statements speak only as of the date they are made, and EVO assumes no obligation to update or revise forward-looking statements to reflect actual performance or results, changes in assumptions or changes in other factors affecting forward-looking information, except to the extent required by law.
Corporate Contact Information
Thomas J. Abood
Chief Executive Officer
Gateway Investor Relations