Twin Vee PowerCats and Forza X1 are to merge under an all-stock transaction agreement.
Under the agreement, Forza will merge with Twin Vee and become a wholly owned subsidiary.
The agreement is intended to allow the companies to build on their 30-year history of delivering offshore fishing and recreational boats.
The companies say it will also provide the merged organisations to have a strong balance sheet with no funded debt, providing a solid foundation for future investments and growth.
In addition, the overhead costs of two separate companies will be eliminated together with the management attention required to maintain two separate public companies.
“Twin Vee is taking the steps necessary to drive this company forward,” said Twin Vee’s chairman and CEO, Joseph Visconti, who also serves as Forza’s interim CEO. “We believe this merger is the next logical step.”
I am so excited to bring these two companies together at this time. This merger represents the latest significant milestone for both Twin Vee and Forza X1.
Joseph Visconti, Twin Vee chairman and CEO
He continued: “It will take time, resources, and effort to achieve our goals, but we have assembled the right team, we have a strong balance sheet, and we have the support of a great group of shareholders to help us get there.
“I am so excited to bring these two companies together at this time. This merger represents the latest significant milestone for both Twin Vee and Forza X1.
“By combining our resources and strengths, we are creating a more competitive company that is positioned to achieve our long-term profitable growth and drive shareholder value.”
The transaction is expected to close by the end of 2024 and is subject to customary closing conditions, including the receipt of regulatory approvals and the approval of the Twin Vee and Forza shareholders.
Upon the closing of the transaction, the merged company will operate under the Twin Vee PowerCats Co. name.
In July 2024, it was announced that Forza would discontinue its operations and wind down its business, a decision made by the board of directors to retain cash and reduce expenditure as a result of current market conditions.
Also in July 2024, Twin Vee appointed Karl Zimmer as president and Michael Dickerson as CFO.
