Shorepower Technologies, Inc. (OTC: SPEV) has entered into a merger agreement with Aeternum Health LLC that will fundamentally transform the company's business model and strategic direction. The transaction, structured as a tax-free reorganization under Section 368(a) of the Internal Revenue Code, marks a dramatic shift from transportation electrification infrastructure to the rapidly growing longevity and health optimization sector.
Under the terms of the agreement, Aeternum Health will merge into Shorepower, with the surviving entity issuing common stock representing 51% ownership to the sole member of Aeternum Health. The transaction also includes the issuance of 2,000,000 shares of Series B Preferred Stock, each with voting power equivalent to 40 shares of common stock. Aeternum Health will contribute a minimum of $1.5 million in cash, along with intellectual property and know-how related to a novel peptide mix in development for longevity and anti-aging applications, plus a business focused on commercializing this peptide technology.
The strategic importance of this merger lies in the growing market for longevity-focused healthcare solutions. As global populations age and demand for health optimization technologies increases, companies developing scientifically-backed interventions for aging are attracting significant investment. The transaction positions the combined entity to capitalize on this trend by leveraging Aeternum Health's peptide technology and Shorepower's public company structure.
Leadership changes accompany the strategic shift, with Jeff Kim resigning as President, CEO, and sole director. Paul E. Mann, Manager of Aeternum Health, will assume these roles upon closing of the merger. Mann brings extensive experience in biotechnology and healthcare investing, having previously served as Chairman and CEO of ASP Isotopes Inc. (Nasdaq: ASPI) and held senior investment roles at Soros Fund Management, Highbridge Capital, and DSAM Partners. His background includes 11 years as a sell-side analyst at Morgan Stanley and Deutsche Bank, where he co-managed top-ranked healthcare research teams.
Corporate actions following the merger include a planned name change to Aeternum Health Inc., an increase in authorized common shares to 250 million, and a spin-out of Shorepower's existing transportation electrification business. The company will file financial statements and pro forma financial information relating to Aeternum Health within 71 calendar days of the initial Form 8-K filing. Additional details about the transaction and forward-looking statements are available through the company's regulatory filings and announcements.
The merger represents a significant development in the convergence of biotechnology and public market investment strategies. For investors and industry observers, the transaction highlights the increasing valuation placed on longevity technologies and the willingness of companies to completely reinvent their business models to enter this space. The success of this strategic pivot will depend on multiple factors, including regulatory approvals, integration of the peptide technology, market acceptance of longevity solutions, and the company's ability to navigate the complex healthcare commercialization landscape.
