Twin Vee PowerCats Co. (NASDAQ:VEEE) stock surged on Monday after the company announced a strategic merger and a concurrent plan to privatize its recreational marine business.
The sharp rally came despite weakness across the broader market. The S&P 500 fell about 0.6%, while the Nasdaq declined as technology stocks remained under pressure. The Consumer Discretionary sector also slipped about 0.8%, making VEEE one of the session’s biggest gainers.
Twin Vee PowerCats Stock Soars After Merger, Privatization Plan
Twin Vee said Monday it will merge with a subsidiary of USFM Corporation while spinning off and privatizing its Twin Vee and Bahama Boat Works marine business.
Before the merger closes, the company will transfer its marine operations into a newly created Delaware statutory trust. Existing shareholders will receive contingent value rights (CVRs), entitling them to future distributions generated by the privately held boating business, while also receiving equity in the combined public company.
