Halper Sadeh probes Twin Vee merger with USFM Corporation

Halper Sadeh and Brodsky & Smith said they are examining whether Twin Vee’s board secured fair value, ran a fair sale process and made adequate disclosures in the proposed USFM deal and related marine-business separation.

Summary

Halper Sadeh LLC and Brodsky & Smith said they are investigating Twin Vee PowerCats Co.’s proposed transaction with USFM Corporation, focusing on whether Twin Vee’s board may have breached fiduciary duties or violated federal securities laws by failing to obtain fair value, conduct a fair process free of conflicts and disclose material information. Brodsky & Smith said the deal would separate Twin Vee’s recreational marine business into a newly created private trust economically owned by existing shareholders through contingent value rights, while shareholders would also receive shares of the combined public company after the merger with a USFM subsidiary. Halper Sadeh said it may seek increased consideration, additional disclosures or other relief on behalf of shareholders.

Terms & Concepts
  • fiduciary duties: Board obligations to act in shareholders’ best interests
  • contingent value rights (CVRs): Rights that give shareholders potential future payments tied here to the separated marine business
  • material information: Important facts investors need to evaluate a deal