-Blackbox Stockholders to retain 26.7% of
the combined company’s 12,000,000 common shares post-merger plus
receive a Contingent Value Right (“CVR”) for current Blackbox
fintech operations-
-Blackbox has already acquired 13% of Sister
Company Evtec Automotive with $80 million in revenue and plans to
acquire the remainder of the company in parallel-
-Transaction expected to close in Q1
2024-
Blackboxstocks Inc. (NASDAQ: BLBX), (“Blackbox” or the
“Company”), a financial technology and social media hybrid platform
offering real-time proprietary analytics for stock and options
traders, announced today that on December 12, 2023 it executed a
definitive agreement to acquire Evtec Aluminium Limited (“Evtec”).
The transaction is expected to close in the first quarter of
2024.
Evtec is a supplier of proprietary mission critical parts for
the Electric Vehicle (“EV”), Hybrid, Performance and Luxury OEM
automotive markets to brands including JLR (formerly Jaguar Land
Rover), Aston Martin, Ford, Bentley, and auto suppliers including
Dana, American Axle, Cox Powertrain, among others. David Roberts, a
40-year veteran of the global automotive market and a UK Export
Ambassador, leads a team of seasoned executives with decades of
experience.
- Revenue estimates for Evtec Aluminum have now reached $52
million for fiscal 2024 ending June 30, an increase of over 60%
from the prior year.
- Evtec has record order demand in its pipeline with
approximately $778 million in existing orders scheduled for
delivery beginning in March 2024. The order book has increased by
approximately $430 million over the past eight (8) months and is
expected to increase by at least an additional $150 million by
March 2024.
- Evtec’s strategy includes both organic growth and growth
through acquisition. Evtec’s acquisition targets include companies
with strong order books for mostly single sourced parts at
attractive valuations. Currently, the Company has multiple targets
that are off-market, that can provide substantial growth
opportunities.
The Acquisition
- Post-closing, Blackbox and Evtec Aluminum common stockholders
will own 26.7% and 73.3% of the estimated 12,000,000 common shares
outstanding post-merger, respectively.
- Blackbox plans to acquire the remaining 87% of Evtec Automotive
in Q1 of 2024. Evtec Automotive’s inclusion in the merger would
result in Blackbox shareholders retaining 9.5% of the combined
companies.
- Blackbox common stockholders of record immediately prior to
closing of the transaction will receive a contingent value right
(“CVR") for the net proceeds received by the Company for the sale
or spin-off of the current Blackbox fintech operations within a
24-month period after the close of the merger. The current Blackbox
operations will be moved into a new subsidiary prior to the
closing.
- David Roberts will assume the roles of Chairman and CEO of the
parent Company post-closing. Gust Kepler will continue to serve as
the CEO of the Blackbox fintech operations and Robert Winspear will
remain a director and CFO of the parent Company, all post-closing.
Evtec will appoint three new independent directors to the Company’s
Board.
- The transaction is expected to close in the first quarter of
2024 and is subject to customary closing conditions including but
not limited to regulatory, lender and stockholder approval.
Blackbox and Evtec plan to file a joint Registration Statement and
proxy on Form S-4 as soon as practical.
Gust Kepler, Chief Executive Officer of Blackbox, commented,
“This is a great transaction that delivers outstanding value for
Blackbox stockholders. Not only will our stockholders retain the
current value of the Blackbox operations via a contingent value
right (CVR), but they will also receive a significant interest in
Evtec’s operations going forward. As a subsidiary of the parent
company, Blackbox’s fintech operations will continue to create and
provide innovative tools and analytics for traders. We look forward
to completing the transaction in Q1 2024 and delivering maximum
value to our shareholders.”
Evtec Operations and Strategy
Evtec, founded by leading entrepreneur David Roberts, seeks to
generate attractive long-term returns within the manufacturing
sector. Evtec’s objective is to push the boundaries of
manufacturing excellence through investing in promising companies,
clever technology, and market leading practices. They have built up
an impressive portfolio of private companies, located in the UK, in
a wide variety of sectors including luxury goods, automotive
vehicles and trucks, automotive parts and components, consumer
goods and industrial products, that complement each other in order
to provide the market with superior products and services.
Evtec focuses on the luxury, performance, hybrid and electric
vehicle (“EV”) automotive supply chain revolution. The business is
based upon streamlining the supply chain for their OEM customers
while targeting market segments with strong growth and more price
elasticity in order to generate higher margins. EV demand continues
to outpace the automotive industry and is expected to continue to
do so for the foreseeable future. The luxury segment of the
industry generates higher margins, thereby allowing manufacturers
to pay premium prices in order to improve supply chain operations
and efficiency.
Evtec’s strategy includes future acquisitions to augment its
strong organic growth. Leveraging its excellent track record for
delivering high quality parts on time, Evtec is well positioned to
acquire companies that have strong order books but lack Evtec’s
operational capabilities. Evtec currently has multiple targets for
potential acquisition.
Evtec’s U.S. strategy is to partner with established brands and
distribution to expand into higher margin opportunities driven by
Evtec’s relationships with well renowned global brands in the
industry, including the racing and performance segments. By
providing opportunities for higher margin revenues and new
distribution channels, Evtec anticipates its U.S. launch to drive
significant revenue growth in 2024 and beyond through organic and
acquisition growth.
David Roberts, Chairman and CEO of Evtec, added, “The market
opportunity to be a single-source, strategic supplier to global
OEMs in the EV and Hybrid automotive sector is significant and
growing exponentially. The global pressures on reducing supply
chain risk fragility, increasing localization and near-shoring,
combined with proven competency in complex assemblies and precision
parts, underpins the strong growth we are experiencing at Evtec.
Access to the public markets provided by this transaction is
compelling for all of our stakeholders as it supports our strategic
plan that includes expansion of our global footprint by both
organic growth and acquisition.”
James Whittle, Global Purchasing and Supplier Quality Director
for JLR (Jaguar Land Rover), said, “JLR is very supportive of Evtec
becoming a public company and moving ahead with its investment
programme to further increase its capacity and capability to supply
key components for our EV vehicles as they are a key strategic
partner for us and our growth strategy.”
About Evtec
Evtec is a UK-based business group providing complete assemblies
and complex engineered components to auto manufacturers,
simplifying sourcing, saving time on procurement, and increasing
production efficiency. Their pick and pack service supplies
aftermarket automotive products, as well as offering kitting and
fulfilment for non-automotive businesses. Their business focuses on
premium luxury brands and a market transition to electric vehicles
and includes Jaguar Land Rover Group as their largest customer. As
a result of significant change in the global supply chain for auto
manufacturing in Great Britain that places an increased need for
local sourcing of parts, Evtec is well positioned to expand both
organically and through acquisition. For more information, go to:
https://www.evtec-group.com/
About Blackboxstocks, Inc.
Blackboxstocks, Inc. is a financial technology and social media
hybrid platform offering real-time proprietary analytics and news
for stock and options traders of all levels. Our web-based software
employs "predictive technology" enhanced by artificial intelligence
to find volatility and unusual market activity that may result in
the rapid change in the price of a stock or option. Blackbox
continuously scans the NASDAQ, New York Stock Exchange, CBOE, and
all other options markets, analyzing over 10,000 stocks and up to
1,500,000 options contracts multiple times per second. We provide
our users with a fully interactive social media platform that is
integrated into our dashboard, enabling our users to exchange
information and ideas quickly and efficiently through a common
network. We recently introduced a live audio/screenshare feature
that allows our members to broadcast on their own channels to share
trade strategies and market insight within the Blackbox community.
Blackbox is a SaaS company with a growing base of users that spans
over 40 countries; current subscription fees are $99.97 per month
or $959.00 annually.
For more information, go to: https://blackboxstocks.com/
Safe Harbor Clause and Forward-Looking Statements
This press release includes forward-looking statements. All
statements other than statements of historical facts contained in
this press release, including statements regarding our future
results of operations and financial position, business strategy and
plans, and our objectives for future operations, are
forward-looking statements. The words “anticipate,” “believe,”
“continue,” “could,” “estimate,” “expect,” “expose,” “intend,”
“may,” “might,” “opportunity,” “plan,” “possible,” “potential,”
“predict,” “project,” “should,” “will,” “would” and similar
expressions that convey uncertainty of future events or outcomes
are intended to identify forward-looking statements, but the
absence of these words does not mean that a statement is not
forward-looking.
The forward-looking statements contained in this press release
are based on our current expectations and beliefs concerning future
developments and their potential effects on us. Future developments
affecting us may not be those that we have anticipated. These
forward-looking statements involve a number of risks, uncertainties
(some of which are beyond our control) and other assumptions that
may cause actual results or performance to be materially different
from those expressed or implied by these forward-looking
statements. These risks and uncertainties include, but are not
limited to, those factors described under the heading “Risk
Factors” in our filings with the Securities and Exchange Commission
(the “SEC”), including our reports on Forms 10-K, 10-Q, 8-K and
other filings that we make with the SEC from time to time. Should
one or more of these risks or uncertainties materialize, or should
any of our assumptions prove incorrect, actual results may vary in
material respects from those projected in these forward-looking
statements. We undertake no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as may be required under
applicable securities laws. These risks and others described under
“Risk Factors” in our SEC filings may not be exhaustive.
By their nature, forward-looking statements involve risks and
uncertainties because they relate to events and depend on
circumstances that may or may not occur in the future. We caution
you that forward-looking statements are not guarantees of future
performance and that our actual results of operations, financial
condition and liquidity, and developments in the industry in which
we operate may differ materially from those made in or suggested by
the forward-looking statements contained in this press release. In
addition, even if our results or operations, financial condition
and liquidity, and developments in the industry in which we operate
are consistent with the forward-looking statements contained in
this press release, those results or developments may not be
indicative of results or developments in subsequent periods.
Disclosure Information
Blackboxstocks uses and intends to continue to use its Investors
website at https://blackboxstocks.com/company-overview as a means
of disclosing material nonpublic information and for complying with
its disclosure obligations under Regulation FD. Accordingly,
investors should monitor the Company’s Investors website, in
addition to following the Company’s press releases, SEC filings,
public conference calls, presentations and webcasts.
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version on businesswire.com: https://www.businesswire.com/news/home/20231213868320/en/
Investors@blackboxstocks.com PCG Advisory Stephanie Prince (646)
863-6341 sprince@pcgadvisory.com
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