Blackboxstocks To Acquire REalloys, Stock Plunge In Pre-market

(RTTNews) - Blackboxstocks Inc. (BLBX), a financial technology and social media hybrid platform, on Monday announced a merger agreement with REalloys Inc. The financial aspects of the deal are not revealed.

The merger is expected to close in the second quarter of 2025.

Share of Blackboxstocks are dropping in the pre-market.

As per the agreement, REalloys stockholders will own about 92.7 percent of the combined company, while Blackbox stockholders will hold 7.3 percent, based on REalloys' $400 million valuation. Blackbox stockholders will receive Contingent Value Rights or CVRs for proceeds from a potential sale of its fintech operations within 24 months.

David Argyle will become CEO of the combined company, while Gust Kepler will lead Blackbox.io, a fintech subsidiary. REalloys will appoint five board members, and Blackbox will appoint one.

The merger aims to make REalloys, a fully integrated producer of rare earth high-performance magnets in North America. REalloys' management believes this will help secure key supply chains for U.S. national defense, advanced technology, and infrastructure.

REalloys said it aims to use advanced technology to ensure a reliable and scalable supply of rare earth materials, reducing U.S. reliance on foreign sources amid global uncertainty.

In the pre-market trading, Blackboxstocks is 15.05% lesser at $2.9391 on the Nasdaq.