Blacboxstocks announces $8.5M stake in Evtec as move to planned merger

Blackboxstocks announced that it executed a Securities Exchange Agreement with Evtec Group Limited on June 9 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 will issue 2.4M hares 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 $8.52M, enabling the company to regain compliance with the $2.5M minimum stockholders’ equity requirement for continued listing on The Nasdaq Capital Market, as set forth in Nasdaq Listing Rule 5550. 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.