Twin Vee PowerCats Co. has agreed to an all-stock transaction to merge with electric-boat manufacturer Forza X1. The plan is to make Forza a wholly-owned subsidiary of Twin Vee so it will survive the merger financially.
Once the transaction closes, Twin Vee expects to have more than $1 per share in cash, $2 per share in net assets and no funded debt. Streamlined operations will eliminate the overhead costs and management attention required to maintain two separate companies.
“Twin Vee is taking the steps necessary to drive this company forward,” Twin Vee chairman and chief executive officer Joseph Visconti said in a statement. “We believe this merger is the next logical step. We began by bringing in top talent from larger organizations that could help us achieve our growth and profit objectives.”
Karl Zimmer is the new president at Twin Vee and Michael Dickerson is the new chief financial officer. Visconti said in the statement that they are “laser-focused on leaning out waste and inefficiency, driving down our product and overhead costs, continuing the ERP implementation, and developing procedures and platforms to build the best boats possible and scale those efficiencies as we grow the business.”
Each holder of Forza common stock will receive 0.612 shares of Twin Vee Common Stock in exchange for each share of Forza stock he or she owns on the date of the merger. The exchange ratio was negotiated so the re-closing security holders of Twin Vee and Forza would own approximately 64% and 36%, respectively, of the outstanding shares of Twin Vee common stock after the merger closes.
The board of directors of Twin Vee and Forza approved the merger agreement and the transaction is expected to close by the end of 2024 and is subject to customary closing conditions.
