Blackbox issues 2.4 million shares of Series B Convertible Preferred Stock for stake in Evtec Group; Regains Compliance with NASDAQ Stockholder Equity Requirement
Blackboxstocks, a financial technology and social media hybrid platform offering real-time proprietary analytics for stock and options traders of all levels, announced that it executed a Securities Exchange Agreement with Evtec Group Limited on June 9, 2023. The Securities Exchange Agreement provides for a mutual investment between the two companies as an initial step towards completing the planned merger between Blackbox and Evtec Group Limited, Evtec Aluminium Limited, and Evtec Automotive Limited (collectively “Evtec”), as previously announced on April 17, 2023.
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“We are equally enthusiastic about making this initial investment with Blackbox as we move towards completion of our merger. Evtec has a substantial order book of over $500 million and a number of acquisition opportunities that we believe the combination of Evtec and Blackbox can help us realize.”
Under the terms of the Securities Exchange Agreement, Blackbox will issue 2.4 million shares of a newly created Series B Convertible Preferred Stock in exchange for 4,086 newly issued preferred shares of Evtec Group Limited. The Series B Preferred Stock is non-voting and will be convertible into common stock on a one-for-one basis only after receiving stockholder approval. The preferred shares issued by Evtec Group are non-voting and convertible into common shares on a one-for-one basis immediately prior to, or at the time of, the merger between the companies.
As a result of the execution of the Securities Exchange Agreement, Blackbox stockholders’ equity will increase by $8.52 million, enabling the company to regain compliance with the $2.5 million minimum stockholders’ equity requirement for continued listing on The Nasdaq Capital Market, as set forth in Nasdaq Listing Rule 5550(b)(1).
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Gust Kepler, Chief Executive Officer of Blackbox, commented, “This agreement is an important first step in our merger plan with Evtec and demonstrates the strong financial commitment that both companies have to complete it. In parallel, we are continuing to build our core business in the fintech sector. We believe this dual strategy will provide maximum value for our shareholders by allowing them to participate in the continued operations of Blackbox in addition to the explosive EV and luxury automotive parts sector served by Evtec.”
David Roberts, Chairman and CEO of Evtec, added, “We are equally enthusiastic about making this initial investment with Blackbox as we move towards completion of our merger. Evtec has a substantial order book of over $500 million and a number of acquisition opportunities that we believe the combination of Evtec and Blackbox can help us realize.”
Evtec Group is the parent of Evtec Automotive Limited and an affiliate of Evtec Aluminium. Evtec Aluminium was not a party to the Securities Exchange Agreement but will be acquired as part of the merger.
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