Blackboxstocks Inc. Merges with REalloys to Boost Supply Chains

Blackboxstocks Inc. Merges with REalloys to Advance Rare Earth Production

Blackbox Stockholders to Retain Approximately 7.3% of the Combined Company’s Common Shares Post Merger

REalloys Set to Become a Fully Integrated Mine-to-Magnet Producer for North America

America First Initiative Focused on Essential Rare Earth Magnets and Alloys

Blackboxstocks Inc. (NASDAQ: BLBX), a cutting-edge financial technology and social media platform that provides real-time analytics for investors, recently announced an exciting merger agreement with REalloys Inc., an innovative company dedicated to the extraction and production of rare earth elements. This merger could significantly reshape the landscape of rare earth production in North America, with expectations to establish REalloys as a leader in the market.

The cornerstone of REalloys' operations is the Hoidas Lake Rare Earth Deposit, located in Saskatchewan. This site is regarded as one of the richest sources globally, containing valuable elements such as neodymium, praseodymium, dysprosium, and terbium. With the merger, the management of REalloys aims to capitalize on this significant resource to bolster U.S. national defense and support advanced technological needs.

David Argyle, the Chief Executive Officer of REalloys, echoed these sentiments, emphasizing the company’s mission to provide critical materials that are essential for national defense. He noted that this partnership with Blackbox represents a pivotal moment for American autonomy in rare earth production.

Details of the Merger

Upon the successful completion of this merger, stock ownership is expected to be split, with Blackbox shareholders owning approximately 7.3% and REalloys shareholders obtaining about 92.7% of the new entity. This structure is based on REalloys' initial valuation of around $400 million.

As part of the merger, existing Blackbox shareholders will receive Contingent Value Rights (CVRs). These rights grant shareholders a stake in the potential sale of Blackbox’s fintech operations within a two-year timeframe following the merger closure.

After the merger, David Argyle will step up as the Chief Executive Officer of the newly formed entity, while Gust Kepler continues as CEO of Blackbox.io, Inc., which will oversee the existing fintech operations. The board will have representation from both companies, with REalloys appointing five members and Blackbox one, ensuring shared leadership in navigating this transition.

Regulatory and Compliance Steps Ahead

In the coming months, Blackbox and REalloys will work hand in hand to file essential documents, including a Registration Statement and Proxy Statement on Form S-4, to gain the necessary approvals for the merger. Like any major transaction, it is subject to various customary closing conditions such as regulatory and stockholder approval, aiming for completion in the second quarter of 2025.

Winstead PC will provide legal counsel for Blackbox, while Haynes and Boone, LLP will represent REalloys in navigating the merger process. This commitment underlines the importance of proper legal guidance in ensuring the successful integration of both companies.

About REalloys and Blackboxstocks

REalloys Inc. is positioned strategically with its Hoidas Lake deposit. With a significant Mineral Resource Estimate of over 2 million tons of Total Rare Earth Oxides, it offers promising potential for sustained growth in the sector. The company's goal is to support critical industries such as National Defense, Nuclear, and electric aviation, creating a robust domestic supply chain.

On the other hand, Blackboxstocks is revolutionizing how traders access real-time analytics and market insights. Their platform utilizes predictive technology to identify volatility and unusual activity across various trading markets, ensuring users stay informed and connected.

The merger between Blackboxstocks Inc. and REalloys Inc. marks an encouraging step toward securing America’s supply chains for essential materials while enhancing both companies' capacities to serve their respective markets effectively. As the integration unfolds, stakeholders and investors remain on alert for significant developments in the months to come.

Frequently Asked Questions

What is the significance of the merger between Blackboxstocks and REalloys?

The merger aims to position REalloys as a leader in the rare earth production industry while enhancing supply chains crucial for national defense and advanced technologies.

How will stock ownership change after the merger?

Stock ownership will be approximately 7.3% for Blackbox shareholders and 92.7% for REalloys shareholders post-merger, based on an initial valuation of $400 million.

What are Contingent Value Rights (CVRs) related to the merger?

CVRs will be given to Blackbox stockholders, entitling them to potential proceeds from sales of Blackbox’s fintech operations within two years after the merger closes.

What is the expected timeline for the merger's completion?

The merger is anticipated to close in the second quarter of 2025, contingent upon regulatory and shareholder approvals.

What industries will REalloys support with their resources?

REalloys will supply critical materials to industries including national defense, nuclear, robotics, and electric aviation, fostering a strong domestic supply chain.

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