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DALLAS - Blackboxstocks Inc. (NASDAQ:BLBX) provided an update Friday on its pending acquisition of REalloys Inc., a U.S.-based rare earth company specializing in high-performance magnet materials. The company’s stock has seen remarkable growth, surging over 360% in the past six months, though according to InvestingPro analysis, it currently trades above its Fair Value.
The financial technology company, which operates a trading platform, executed a definitive merger agreement with REalloys on March 10, 2025. With a market capitalization of $30.46 million and an overall Financial Health score rated as FAIR by InvestingPro, the transaction is expected to close in late August, pending SEC, Nasdaq and stockholder approvals.
Upon completion, Blackboxstocks’ legacy stockholders will own approximately 7.3% of the combined company. These stockholders will also receive Contingent Value Rights entitling them to certain net proceeds from any potential sale of Blackbox’s fintech operations within 24 months following the merger.
REalloys’ primary asset is the Hoidas Lake rare earth deposit in Saskatchewan, Canada, which contains measured and indicated mineral resources totaling 2,153,000 metric tonnes of Total Rare Earth Oxides at an average grade of 1.906%, according to a technical report cited in the release.
The company recently acquired PMT Critical Metals Inc. in Euclid, Ohio, which produces rare earth metals and magnet materials for clients including the U.S. Defense Logistics Agency and the Department of Energy’s AMES National Laboratory.
REalloys has also signed a Memorandum of Understanding with the Saskatchewan Research Council to advance commercial production of high-performance rare earth magnet materials, with targeted production capacity of 500 metric tonnes per year by 2026.
Blackboxstocks will continue to operate its fintech business through its wholly owned subsidiary, Blackbox.io Inc., according to the press release statement.
The company currently has approximately 3.7 million common shares outstanding. Financial metrics reveal challenges, with a negative EBITDA of $3.32 million in the last twelve months and a current ratio of 0.29. InvestingPro subscribers have access to 8 additional key insights about BLBX’s financial position and growth prospects.
In other recent news, Blackboxstocks Inc. announced it has entered into an at-the-market (ATM) issuance sales agreement with Alexander Capital, L.P. This agreement allows Blackboxstocks to offer and sell shares of its common stock with a total aggregate offering price of up to $5.8 million. The sales will be conducted by Alexander Capital, which will act as the sales agent, with a commission of 3.0% on the gross proceeds. In related developments, Blackboxstocks has amended its merger agreement with REalloys Inc. to allow for an ATM stock offering. This amendment permits the company to conduct an offering of up to 250,000 shares without affecting the planned merger with REalloys. The amendment also clarifies that these shares will not be included in the calculation of outstanding shares for determining merger consideration. The merger agreement initially disclosed in March 2025, involves REalloys merging into a wholly owned subsidiary of Blackboxstocks. These recent developments are part of Blackboxstocks’ strategic financial maneuvers.
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