Twin Vee PowerCats Co. (NASDAQ:VEEE) saw its shares climb 28% on Thursday following the release of a definitive merger agreement with USFM Corporation, a privately held U.S. mineral exploration company concentrating on critical mineral prospects in Greenland.
Under the terms disclosed, a unit of USFM will merge with and into Twin Vee. Once the transaction closes, holders of Twin Vee common stock will receive equity in the public company that results from the combination.
Before the merger is completed, Twin Vee’s recreational marine operations - marketed under the Twin Vee and Bahama Boat Works names - will be carved out into a privately owned company maintained through a newly established Delaware statutory trust. Current Twin Vee shareholders will be issued a non-transferable contingent value right that entitles them to any future distributions produced by that spun-out business.
The proposed transaction has been approved by the boards of directors of both corporations. It remains subject to customary closing conditions, which include approval from Twin Vee’s disinterested shareholders, the stockholders of USFM and any required regulatory clearances. The parties have stated they expect the deal to close in the third quarter of 2026, at which time the combined company is anticipated to trade on NYSE American.
The merger announcement coincides with progress at USFM’s 2026 exploration programme at the Disko-Nuussuaq Project in West Greenland, carried out in partnership with the project operator 80 Mile plc (AIM:80M). According to the companies, two drill rigs began operations on July 1 and are targeting high-priority zones at Qullissat on Disko Island as part of an up-to-9,000-metre drilling schedule.
USFM’s work at Disko-Nuussuaq is funded under its earn-in agreement with 80 Mile. That arrangement has USFM covering $30 million of drilling-related expenditures at the project, including $10 million specifically committed for the spring/summer 2026 season.
Summary
Twin Vee PowerCats and USFM have entered a definitive merger agreement that will leave Twin Vee’s marine business in a privately held trust while merging a USFM subsidiary into the public company. Twin Vee shareholders will receive equity in the combined entity and contingent value rights tied to the spun-out marine business. The deal is board-approved, subject to shareholder and regulatory approvals, and is expected to close in Q3 2026 with the combined company trading on NYSE American. Concurrently, USFM has initiated a fully funded drilling programme at Disko-Nuussuaq in partnership with 80 Mile.
- Key points:
- Twin Vee’s stock jumped 28% on the merger announcement, reflecting investor reaction to the deal structure and prospective equity in the combined public company.
- The recreational marine operations will be separated into a privately held entity under a Delaware statutory trust, and existing shareholders will receive a non-transferable contingent value right tied to future distributions of that business.
- USFM is advancing a fully funded drilling programme at Disko-Nuussuaq in West Greenland with two rigs operating and up to 9,000 metres planned; USFM is funding $30 million of drilling-related expenditures under its earn-in agreement with 80 Mile, including $10 million for spring/summer 2026.
- Risks and uncertainties:
- The transaction remains subject to customary closing conditions, including approvals from Twin Vee’s disinterested shareholders, USFM’s stockholders and applicable regulatory authorities - any failure to secure these approvals could prevent the deal from closing as planned. - Markets and corporate governance.
- The timetable anticipates closing in the third quarter of 2026; delays or changes to that schedule could affect when the combined company begins trading on NYSE American. - Capital markets and investor liquidity.
- Execution risk for the Disko-Nuussuaq drilling programme exists despite funding commitments; operational or logistical issues in Greenland could influence USFM’s progress under its earn-in agreement with 80 Mile. - Mining and exploration sector.