Twin Vee PowerCats Co. (VEEE) had a Monday for the ages. The stock shot up more than 440% after the company announced it would merge with a subsidiary of USFM Corporation and, in a separate move, spin off its recreational marine business into a private company. The rally was especially striking given that the broader market was having a rough day — the S&P 500 fell about 0.6%, the Nasdaq declined, and the Consumer Discretionary sector slipped about 0.8%. But VEEE was one of the session's biggest gainers.

Here's the structure of the deal: Before the merger closes, Twin Vee will transfer its marine operations — including the Twin Vee and Bahama Boat Works brands — into a newly created Delaware statutory trust. Existing shareholders will receive contingent value rights (CVRs), which entitle them to future distributions from the privately held boating business. On top of that, they'll also get equity in the combined public company. The company says the transaction is designed to unlock shareholder value, improve strategic flexibility, and support long-term growth.

The combined company is expected to trade on the NYSE American after the deal closes, which is anticipated in the third quarter of 2026, subject to shareholder, regulatory, and other customary approvals. Twin Vee assured that its marine operations will continue without interruption during the transition.

Twin Vee, based in Fort Pierce, Florida, has been making recreational boats under the Twin Vee and Bahama Boat Works names for about 30 years. USFM Corporation, on the other hand, is a privately held U.S.-based mineral exploration company focused on critical mineral projects, including the Disko-Nuussuaq Project in Greenland. So this is a classic case of a boat builder merging with a mining explorer — not your everyday corporate event.

As of publication, VEEE shares were trading at $12.15, up 446.68% on the day.