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Twin Vee PowerCats Stock Soars 28% on Merger with Mineral Explorer USFM

ENTHMSVIIDZHZH-TWJAKOHI
Jul 16, 20262 min read
Twin Vee PowerCats Stock Soars 28% on Merger with Mineral Explorer USFM

Summary

Shares of Twin Vee PowerCats (NASDAQ: VEEE) jumped after the boat maker announced a definitive merger with mineral exploration firm USFM Corp. The deal will spin off Twin Vee's marine business and create a new publicly traded mining company.

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Background

Shares of Twin Vee PowerCats Co. (NASDAQ: VEEE) surged 28% in Thursday trading after the company announced a definitive merger agreement with USFM Corporation, a privately held mineral exploration firm. The transaction will effectively allow USFM to go public while separating Twin Vee's legacy boat manufacturing operations into a private entity.

Details of the Merger

Under the terms of the agreement, a subsidiary of USFM will merge into Twin Vee. Upon closing, existing Twin Vee common stockholders will receive equity in the new, combined public company, which will focus on USFM's mineral exploration business.

Critically, Twin Vee’s recreational marine business, which operates the Twin Vee and Bahama Boat Works brands, will be spun off into a privately held company. This new entity will be managed through a newly formed Delaware statutory trust. Existing Twin Vee shareholders will be issued a non-transferable contingent value right (CVR), entitling them to potential future distributions generated by the separated boat business.

Path to Completion

The boards of directors for both companies have approved the deal. The merger is now subject to customary closing conditions, which include:

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  • Approval by Twin Vee’s disinterested shareholders
  • Approval by USFM’s stockholders
  • Applicable regulatory approvals

The parties expect the transaction to close in the third quarter of 2026. Following the close, the combined company is expected to trade on the NYSE American exchange.

USFM's Focus on Greenland

The merger brings investor attention to USFM's operations, a U.S.-based firm focused on critical mineral opportunities in Greenland. The company is currently advancing its 2026 exploration program at the Disko-Nuussuaq Project in West Greenland.

USFM stated that two drill rigs began operations on July 1 as part of a program of up to 9,000 metres of drilling. The program is fully funded under an earn-in agreement where USFM is funding $30 million in drilling-related expenditures, with $10 million committed for the current spring and summer season.

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