Dallas-based financial technology platform Blackboxstocks has taken an $8.5 million stake in U.K.-based Evtec Group Limited, according to a news release.
The companies entered into a securities exchange agreement, providing for a mutual investment as an initial step towards completing a planned merger between Blackbox and Evtec Group companies. The merger was announced in April.
The agreement details Blackbox will issue 2.4 million shares of a Series B Convertible Preferred Stock in exchange for 4,086 shares of Evtec.
“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,” Gust Kepler, CEO of Blackbox, said in a prepared statement. “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.”
The agreement will increase Blackbox stakeholders’ equity by $8.52 million. The increase enables the company to regain compliance with Nasdaq stockholder equity requirements.
“We are equally enthusiastic about making this initial investment with Blackbox as we move towards completion of our merger,” David Roberts, chairman and CEO of Evtec, said. “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 in the agreement but will be acquired as part of the merger.
