Twin Vee PowerCats Co. (NASDAQ:VEEE) shares jumped 85% following an announcement that the company will merge with a subsidiary of USFM Corporation and move to privatize its recreational marine business.
Under the arrangement, a USFM Corporation subsidiary will merge with Twin Vee, and current stockholders will receive equity in the combined public entity. USFM Corporation is described in the announcement as a developer of strategic mineral interests in Greenland.
As part of the transactional blueprint, Twin Vee will form a Delaware statutory trust for the benefit of stockholders who hold shares prior to the merger closing. The company will transfer the assets and liabilities associated with its marine business - explicitly including the Twin Vee and Bahama Boat Works brands - into that trust.
Each pre-merger stockholder will be issued a non-transferable contingent value right within the trust. Those contingent value rights will entitle holders to potential future distributions that are expected to be generated from the operations of the marine business.
"After a thorough review of strategic alternatives, our Board concluded that 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," said Kevin Schuyler, the company s Lead Independent Director.
The boards of directors of both Twin Vee and USFM Corporation have approved the transaction. The parties noted the closing remains conditional on approval by Twin Vee s disinterested shareholders, receipt of regulatory approvals, and satisfaction of other customary closing conditions.
Executives expect the transaction to close in the third quarter of 2026. After completion, the combined public company is expected to be listed on NYSE American. Twin Vee also stated it does not anticipate immediate changes to customer service, vendor relationships, or employee operations as a result of the announcement.
This development directly affects the recreational marine segment of the market, with implications for related customer, vendor, and employee relationships while also touching on the markets where USFM operates through its mineral interests.