Blackboxstocks Announces $1,250,000 Private Placement Priced at $4.00 per Share

Rhea-AI Summary

Blackboxstocks (NASDAQ: BLBX) has closed a $1.25 million private placement priced at $4.00 per share. The company will invest $1.15 million into Evtec Aluminium and retain $100,000 for working capital. As a result, Blackbox's ownership in the combined entity with Evtec Aluminium will increase from 26.2% to 29.4%.

This investment aims to enhance Evtec's manufacturing capabilities and facilitate growth initiatives. Blackbox and Evtec amended their Share Exchange Agreement to reflect these investments. The private placement was led by Quadrofoglio with $1.15 million and a $100,000 investment from Blackbox CEO Gust Kepler.

Blackbox's advanced analytics will support Evtec's manufacturing operations. Evtec Aluminium is a leading manufacturer of advanced aluminium castings for premium automotive brands, focusing on electric vehicle parts and local supply chain expansion in the UK.

Positive

• Blackboxstocks raised $1.25 million through a private placement.
• Investment increases Blackbox's ownership in Evtec Aluminium from 26.2% to 29.4%.
• Blackbox will invest $1.15 million into Evtec Aluminium for growth and capital expenditures.
• The investment is strategically positioned to enhance Evtec's manufacturing capabilities.

Negative

• None.

Insights

Financial Analyst

Blackboxstocks Inc.'s recent private placement of $1.25 million is noteworthy for retail investors. The transaction, priced at $4.00 per share, suggests a valuation approach that aligns with market norms for similar fintech enterprises. The critical aspect here is the deployment of $1.15 million towards Evtec Aluminium's growth initiatives. This strategic allocation is intended to bolster Evtec's production capacity and enhance operational efficiency. Notably, Blackboxstocks will increase its ownership stake in the combined entity from 26.2% to 29.4%, which could potentially augment its future financial returns if Evtec's growth trajectory meets expectations.

For Blackboxstocks, this move signifies an investment in technological synergy, as their analytics platform will now be integrated into Evtec's manufacturing operations. This not only diversifies Blackboxstocks' portfolio but also consolidates its market presence in the manufacturing sector.

However, it is essential to observe that the remaining $100,000 retained for working capital seems relatively modest. Investors should monitor how effectively this amount supports Blackboxstocks' operational needs and sustains its growth momentum.

Market Research Analyst

This transaction highlights a strategic shift for Blackboxstocks, one that could have significant implications for its market positioning. The increased stake in Evtec Aluminium aligns with a broader trend of fintech companies diversifying their investments to mitigate risks and explore synergistic opportunities. The collaboration between Blackboxstocks' real-time analytics capabilities and Evtec's manufacturing operations may drive technological advancements and operational efficiencies, potentially positioning both companies as leaders in their respective fields.

Moreover, Blackboxstocks' integration into Evtec's supply chain could enhance its competitive edge, particularly in the evolving market for electric vehicle components. Evtec's focus on premium luxury brands and the shift towards local sourcing in Great Britain provides a robust foundation for growth, amplified by Blackboxstocks' analytics solutions.

It is worth noting that CEO Gust Kepler's personal investment of $100,000 may indicate confidence in the company's prospects, which could positively influence investor sentiment.

Blackbox to Invest $1.15 Million into Evtec Aluminium

DALLAS, July 02, 2024 (GLOBE NEWSWIRE) -- Blackboxstocks Inc. (NASDAQ: BLBX), (“Blackbox” or the “Company”), a financial technology and social media hybrid platform offering real-time proprietary analytics for stock and options traders of all levels, announced that it has closed a private placement of its common stock for aggregate proceeds in the amount of $1.25 million priced at $4.00 per share.

• Blackbox will invest $1.15 million into Evtec Aluminium and retain $100,000 for working capital for Blackbox.io, Inc., the Company’s wholly owned operating subsidiary.
• Blackbox is working with Evtec Aluminium to provide custom analytics and enterprise software solutions for their manufacturing operations.
• Evtec Aluminium will use the proceeds to fund its growth initiatives including capital expenditures to increase production capacity.
• Blackbox and Evtec amended the Share Exchange Agreement dated December 12, 2023, to increase the Blackbox percentage ownership of the combined company from 26.2% to 29.4% to reflect the investments into Blackbox and Evtec Aluminium and preserve the value for their shareholders.

The private placement was led by a $1.15 million investment by Quadrofoglio LLC. Blackbox CEO Gust Kepler is also participating in the private placement with an investment of $100,000.

“We are extremely pleased to announce this private placement,” commented Gust Kepler. “This latest round of investment, in which I am participating, demonstrates the strong confidence we have in our Company and the pending combination with Evtec Aluminium. While we work to conclude our exchange acquisition, we continue to enhance our fintech operations through our wholly owned subsidiary Blackbox.io. We plan to utilize our unique analytics technology to create enterprise solutions to assist Evtec Aluminium to achieve maximum efficiency in their manufacturing operations.”

David Roberts, CEO of Evtec Aluminium, added: “The investment by Blackboxstocks is strategically compelling for both companies and will provide resources for capital expenditures to support our growth initiatives.”

About Evtec Aluminium:

Evtec Aluminium is recognised as one of the world’s leading advanced aluminium castings and machining manufacturers supplying premium brand Original Equipment Makers (OEMS). It supplies a range of strategic auto parts on powertrain and EV packs, as well as body-in-white structural parts, from its world-class facilities in the UK. Their business focuses on premium luxury brands and a market transition to electric vehicles, with Jaguar Land Rover as its largest customer. As a result of significant change in the global supply chain for auto manufacturing in Great Britain that places an increased need for local sourcing of parts, Evtec is well positioned to expand both organically and through acquisition. For more information, go to: www.evtec-aluminium.com

About Blackboxstocks, Inc.:

Blackboxstocks, Inc. is a financial technology and social media hybrid platform offering real-time proprietary analytics and news for stock and options traders of all levels. Our web-based software employs “predictive technology” enhanced by artificial intelligence to find volatility and unusual market activity that may result in the rapid change in the price of a stock or option. Blackbox continuously scans the NASDAQ, New York Stock Exchange, CBOE and all other options markets, analysing over 10,000 stocks and up to 1,500,000 options contracts multiple times per second. We provide our users with a fully interactive social media platform that is integrated into our dashboard, enabling our users to exchange information and ideas quickly and efficiently through a common network. We recently introduced a live audio/screenshare feature that allows our members to broadcast on their own channels to share trade strategies and market insight within the Blackbox community. Blackbox is a SaaS company with a growing base of users that spans over 40 countries; current subscription fees are $99.97 per month or $959.00 annually. For more information, go to: https://blackboxstocks.com

Contacts:

Investors@blackboxstocks.com

PCG Advisory
Jeff Ramson
jramson@pcgadvisory.com

FAQ

What is the amount raised by Blackboxstocks in the private placement?

Blackboxstocks raised $1.25 million in the private placement.

What is the share price for Blackboxstocks' recent private placement?

The share price for the private placement is $4.00 per share.

How much will Blackboxstocks invest into Evtec Aluminium?

Blackboxstocks will invest $1.15 million into Evtec Aluminium.

What is the new ownership percentage of Blackboxstocks in the combined company with Evtec Aluminium?

Blackboxstocks' ownership in the combined company will increase to 29.4%.

Who led the private placement for Blackboxstocks?

The private placement was led by Quadrofoglio with a $1.15 million investment.