Twin Vee PowerCats and Forza X1 Announce Definitive Merger Agreement in All-Stock Transaction
Twin Vee PowerCats Co. (NASDAQ: VEEE) and Forza X1 (NASDAQ: FRZA) have unveiled a definitive merger agreement in an all-stock transaction that will see the two companies combine forces. The merger, announced on Monday, is set to strengthen their positions in the electric boating industry.
Under the terms of the agreement, Forza X1 will merge with and into a wholly owned subsidiary of Twin Vee and will survive the merger. In exchange, Forza X1 shareholders will receive 0.61166627 shares of Twin Vee common stock for each Forza common share they own as of the effective date. The transaction caps the issuance of Twin Vee common stock at 5,355,000 shares. Additionally, the 7 million shares of Forza common stock currently held by Twin Vee will be canceled.
The exchange ratio was carefully negotiated to ensure a balanced distribution of ownership between the companies’ pre-closing securityholders. Upon completion of the merger, Twin Vee shareholders will own approximately 64% of the combined company, while Forza X1 shareholders will hold around 36% of the outstanding shares.
This merger marks a significant milestone in the strategic alignment of Twin Vee and Forza X1. Both companies are recognized for their contributions to the marine and electric boating industries, with Twin Vee known for its power catamarans and Forza X1 specializing in electric-powered boats. The merger is expected to enhance the combined entity’s capacity to innovate and expand within the growing market for electric marine vessels.
The merger is subject to customary closing conditions and regulatory approvals. Once finalized, the new combined company aims to leverage the strengths of both Twin Vee and Forza X1, positioning itself as a leading player in the electric boating industry.
As the electric boating sector continues to gain momentum, the merger between Twin Vee PowerCats and Forza X1 is poised to create a formidable presence in the market, offering shareholders and customers alike a promising future in sustainable marine transportation.
Financial Desk
