Twin Vee PowerCats surges 370% on merger with USFM subsidiary

Twin Vee PowerCats Co. shares surged more than 370% to about $23 on Monday after the boat maker struck a deal to merge with a subsidiary of USFM Corp., a developer of strategic mineral assets in Greenland, while spinning off its recreational marine business into a private trust.

"The combination of the public company merger and the privatization of the Marine Business provides a compelling path forward for our stockholders, employees, customers, and business partners," Kevin Schuyler, lead independent director at Twin Vee, said in a statement.

Under the terms, a USFM subsidiary will merge into Twin Vee, with existing shareholders receiving equity in the combined company. Before the merger closes, Twin Vee will transfer the assets and liabilities of its marine division — including the Twin Vee and Bahama Boat Works brands — into a Delaware statutory trust. Shareholders will receive non-transferable contingent value rights tied to the trust, entitling them to future distributions generated by the marine business.

The dual-structure transaction effectively transforms Twin Vee from a recreational boat manufacturer into a publicly traded mineral exploration company, while allowing existing holders to retain economic exposure to the boat-making operations. The combined entity is expected to trade on NYSE American, a shift from Twin Vee's current listing on the Nasdaq Capital Market.

The boards of both companies have approved the deal, which remains subject to approval by Twin Vee's disinterested shareholders, regulatory clearances and other customary conditions. The parties target a closing in the third quarter of 2026.

Twin Vee said it does not expect any immediate changes to customer service, supplier relationships or day-to-day operations following the announcement. The company's facilities in Fort Pierce, Florida, remain open, and its dealer network continues to operate in the ordinary course.

"We believe this transition will lower operating overhead and allow us to dedicate more resources to product development, manufacturing and customer support," Joseph Visconti, Twin Vee's president and chief executive officer, said.

The deal has already drawn scrutiny from shareholder rights law firm Halper Sadeh LLC, which announced an investigation into whether Twin Vee's board obtained the best possible price for shareholders and conducted a fair sales process.

Sheppard, Mullin, Richter & Hampton LLP is serving as legal counsel to Twin Vee, with Houlihan Capital providing a fairness opinion to the board. Loeb & Loeb LLP is advising USFM Corp.

This article is for informational purposes only and does not constitute investment advice.