Twin Vee Merges With Forza X1
Twin Vee PowerCats to Merge with Forza X1 in All-Stock Transaction
August 22, 2024
Twin Vee PowerCats Co., a leading manufacturer of power catamarans, has announced an all-stock transaction to merge with electric boat manufacturer Forza X1. The strategic move will result in Forza X1 becoming a wholly-owned subsidiary of Twin Vee, ensuring its financial stability post-merger.
Above: Laila Elise driving a Forza X1 Electric Boat. Photo by Forza.
Merger Details
Upon completion of the transaction, Twin Vee expects to be in a strong financial position, with more than $1 per share in cash, $2 per share in net assets, and no funded debt. The merger aims to streamline operations by consolidating the two companies, thereby reducing overhead costs and management complexities associated with maintaining separate entities.
Company Statement
In a statement, Twin Vee’s Chairman and CEO, Joseph Visconti, emphasized the significance of the merger in driving the company’s growth. “This merger is the next logical step for Twin Vee. We've brought in top talent from larger organizations to help us achieve our growth and profit objectives,” Visconti said.
New Leadership Additions
As part of this leadership enhancement, Karl Zimmer has been appointed as the new president of Twin Vee, while Michael Dickerson steps into the role of chief financial officer. The new leadership team is focused on eliminating waste and inefficiency, reducing product and overhead costs, and furthering the implementation of an Enterprise Resource Planning (ERP) system to enhance operational efficiency.
Financial Implications
Under the terms of the merger agreement, each holder of Forza common stock will receive 0.612 shares of Twin Vee common stock for every share of Forza stock they own at the time of the merger. This exchange ratio has been structured so that, following the merger, Twin Vee's pre-closing security holders will own approximately 64% of the outstanding shares of Twin Vee common stock, while Forza's shareholders will hold around 36%.
The boards of directors of both Twin Vee and Forza have unanimously approved the merger agreement. The transaction, which is subject to customary closing conditions, is expected to be finalized by the end of 2024.
This merger marks a significant step in Twin Vee’s strategy to strengthen its position in the marine industry, particularly in the rapidly evolving electric boat market, where Forza X1 is a key player.
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