Twin Vee PowerCats to merge with USFM, privatize boat unit

Twin Vee PowerCats to merge with USFM, privatize boat unit

Gold slides as U.S.-Iran conflict lifts oil, hawkish Fed bets grow FORT PIERCE, Fla. - Twin Vee PowerCats Co. (NASDAQ:VEEE) announced today that it has entered into a definitive agreement to merge with a subsidiary of USFM Corporation while simultaneously privatizing its boat manufacturing operations. Under the transaction terms, USFM Corporation, a developer of strategic mineral interests in Greenland, will merge with Twin Vee. Existing Twin Vee shareholders will receive equity in the combined company, according to a press release statement.

The merger comes as Twin Vee faces significant financial headwinds, with the company quickly burning through cash and posting a gross profit margin of just 6% in the last twelve months as of Q1 2026, according to InvestingPro data. Prior to the merger’s completion, Twin Vee will transfer its marine business assets and liabilities, which include the Twin Vee and Bahama Boat Works brands, to a Delaware statutory trust. The boat manufacturing operations will continue as a privately held company under this structure.

Twin Vee shareholders will receive non-transferable contingent value rights in the trust, entitling them to future distributions expected to be generated from the marine business operations. The timing may be opportune for shareholders, as the stock has plummeted 94% over the past year and currently trades at just 0.15 times book value. Despite the poor price performance, InvestingPro analysis suggests the stock is undervalued based on its Fair Value assessment, placing it among considerations for the platform’s Most Undervalued stocks.

The company’s market capitalization has shrunk to just $2.55 million. "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, Lead Independent Director of the Company. The transaction has received approval from the boards of directors of both companies.

Completion remains subject to approval by Twin Vee’s disinterested shareholders, regulatory approvals, and other customary closing conditions. The parties expect the transaction to close in the third quarter of 2026. Upon completion, the combined public company is expected to trade on NYSE American.

Twin Vee stated that the marine business will continue operating in the ordinary course through and after closing, with no immediate changes expected to customer service, vendor relationships, or employee operations. Sheppard, Mullin, Richter & Hampton LLP serves as legal counsel to Twin Vee, while Loeb & Loeb LLP represents USFM Corporation. Houlihan Capital provided a fairness opinion to Twin Vee’s board.

Twin Vee manufactures power sport boats and has been operating for 30 years from its Fort Pierce, Florida facility. For investors seeking deeper insights into the company’s financial position and strategic outlook, InvestingPro offers a comprehensive Pro Research Report on VEEE, one of over 1,400 US equities covered. The platform provides 18 additional ProTips beyond those mentioned here, along with detailed financial health scores and expert analysis to help investors make more informed decisions.

In other recent news, Twin Vee PowerCats Co. has announced several significant developments. The company has approved a 1-for-37 reverse stock split of its common stock, which is set to take effect on May 4, 2026. This decision was made by the Board of Directors and will see trading on a split-adjusted basis begin under the existing ticker symbol.

Additionally, Twin Vee PowerCats completed its reincorporation from Delaware to Nevada, a move aimed at reducing operational costs and benefiting from a more statute-focused legal environment. Furthermore, the company has increased the base salary of its Vice President, Preston Yarborough, to $250,000 per year, following approval by the Compensation Committee. This change was formalized through an amendment to Mr. Yarborough’s employment agreement.

In product-related news, Twin Vee PowerCats announced that Exuma Water Sports has ordered a second custom-built 400 GFX2 power catamaran, following the deployment of the first vessel earlier this year. These recent developments highlight Twin Vee PowerCats’ ongoing strategic and operational initiatives.