Shares of Twin Vee PowerCats Co. (VEEE) jumped nearly 12% in Friday's premarket trading, continuing a rally that began after the boat maker announced a merger with a mineral exploration company. The move comes even as broader markets weakened, with S&P 500 futures down 0.8% ahead of the opening bell.
The stock had already closed 36% higher in the previous session, as investors digested the news of the planned merger with USFM Corp., a privately held U.S.-based mineral exploration company. Both companies' boards have approved the transaction, which is expected to close in the third quarter of 2026, pending shareholder and regulatory approvals.
What USFM Brings to the Table
USFM is advancing critical mineral projects, including the Disko-Nuussuaq Project in Greenland. The company recently advanced its 2026 exploration program at the site, a significant milestone that has captured investor attention. The merger gives Twin Vee shareholders exposure to the critical minerals space, a sector that has been in the spotlight due to geopolitical tensions and the push for energy transition metals.
The Marine Business Spin-Off
Before the merger closes, Twin Vee plans to separate its recreational marine business—which includes the Twin Vee and Bahama Boat Works brands—into a privately held company. Existing shareholders will receive non-transferable contingent value rights tied to any future proceeds from the separated business, subject to the deal's completion. This structure allows investors to retain a stake in the marine business's potential upside while the company pivots to minerals.
Price Action
Twin Vee PowerCats shares were trading at $40.35 in premarket activity Friday, up 11.53% from the previous close, according to market data.
