Twin Vee announces 1-for-10 reverse stock split

FORT PIERCE, FL - Twin Vee PowerCats Co. (NASDAQ:VEEE), a prominent boat manufacturer currently trading near its 52-week low at $0.32, will execute a 1-for-10 reverse stock split after market close on April 7, 2025, the company announced today. The adjustment will take effect as the market opens on April 8, 2025, under the same ticker symbol "VEEE." According to InvestingPro analysis, the stock appears undervalued despite falling over 65% in the past year.

This strategic move follows approval from shareholders at the 2024 Annual Meeting on November 11, 2024, where they endorsed an amendment allowing the board to implement a reverse stock split within a specified range. The board decided on the 1-for-10 ratio on March 17, 2025.

The reverse stock split will reduce the number of outstanding common shares from approximately 14.9 million to about 1.5 million. Proportional changes will also be made to outstanding equity awards and warrants, including their exercise prices. However, the total authorized shares of the company’s common stock will remain at 50 million, and the par value will continue to be $0.001 per share.

Twin Vee’s primary goal with this reverse stock split is to elevate its per-share trading price, ensuring compliance with Nasdaq Capital Market’s minimum bid price requirement of $1.00 per share. The company, with a current market capitalization of $4.76 million, maintains a healthy current ratio of 2.78, indicating strong short-term liquidity. InvestingPro subscribers have access to 15+ additional key metrics and insights about Twin Vee’s financial health.

At the time of the reverse stock split, Twin Vee stockholders will receive one new share for every ten shares held. Record holders will get a transaction statement detailing the exchange. Direct Transfer LLC, the company’s transfer agent, will oversee the exchange process. Stockholders with shares in electronic book-entry form or in brokerage accounts do not need to take any action to receive new shares. Fractional shares will not be issued; instead, stockholders will be compensated in cash based on the average closing sales price of Twin Vee common stock on the Nasdaq Capital Market for the ten days leading up to the split.

The company, known for its Twin Vee™ and AquaSport™ boats, has a reputation for stable, fuel-efficient, and smooth-riding catamaran hull designs. Operating for over 30 years from Fort Pierce, Florida, Twin Vee has established itself as a significant name in the catamaran sport boat category. With annual revenue of $14.39 million and trading at just 0.25 times book value, the company presents an interesting case study for value investors. Get deeper insights into Twin Vee’s valuation and growth prospects with a comprehensive Pro Research Report, available exclusively on InvestingPro.

This information is based on a press release statement from Twin Vee PowerCats Co.

In other recent news, Twin Vee Powercats Co reported a substantial decline in their Q4 2024 earnings, with revenue dropping to $1.9 million, marking the lowest in several years. The company’s full-year net sales fell by 57% to $14.4 million compared to the previous year. Despite these challenges, Twin Vee Powercats ended the year with $7.7 million in cash and cash equivalents and is optimistic about a 50% increase in sales for Q1 2025. The company is focusing on expanding its dealer network and enhancing operational efficiencies. In a strategic move, Twin Vee Powercats completed the acquisition of the remaining 55% of Forza X1, which is expected to improve operational efficiencies. The company has also been reducing expenses, including a significant decrease in research and development costs. Looking ahead, Twin Vee Powercats plans to decrease capital expenditures in 2025, focusing on dealer technologies and lead generation.

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