Blackboxstocks (NASDAQ: BLBX) Enters Into LOI to Merge with Evtec Group, a Leading EV Supplier for Luxury Auto Brands
Blackboxstocks, Inc. (NASDAQ: BLBX) is engaged as a fintech and social media company, which offers an innovative platform providing proprietary analysis tools for stock and options traders. Shares of the fintech company are skyrocketing 131% through afternoon trading on Monday, April 17, 2023. Over the past three months, Blackboxstocks has seen average daily volume of 212,690 shares. However, volume of 13.45 million shares or dollar volume of around $82.18 million, has already exchanged hands through afternoon trading.
Shares of Blackboxstocks are soaring after the company announced plans to merge with Evtec Group Limited, Evtec Aluminium Limited, and Evtec Automotive Limited (collectively referred to as “Evtec”). Evtec is an industry leader in supplying custom-made components for some of the world’s most well-known Luxury, Performance, and Electric Vehicle (EV) brands, including Jaguar Land Rover, Aston Martin, and Ford (NYSE: F).
Based in the UK, Evtec provides complete assemblies to auto manufacturers, making sourcing and procurement easier and enhancing production efficiency. What’s more, Evtec offers pick and pack services for aftermarket automotive products and kitting and fulfillment for non-automotive businesses. With a spotlight on premium luxury brands and the move to electric vehicles, Evtec is primed to expand both organically and through acquisitions as global supply chain changes for auto manufacturing demand localized parts sourcing.
Led by David Roberts, a 40-year veteran of the global automotive market who doubles as a UK Export Ambassador, Evtec’s strategic vision is to target and secure mission-critical supply chain assets at attractive prices, with long-term order books stretching from 2024 to 2032, primarily for single-sourced parts. Supported by a team of experienced executives with deep industry knowledge, the company is poised to drive even greater success.
Evtec is riding a wave of unprecedented order demand with approximately $500 million in existing orders slated for delivery between 2024 and 2032. The company is firmly focused on the Luxury, Performance, and EV automotive industry, aligning itself exclusively with market segments boasting strong price elasticity.
Gust Kepler, CEO of Blackboxstocks, was ecstatic about the merger, confident that it will reward stockholders of the post-merger company in the long-run. Blackboxstocks will keep up its presence in the fintech industry as a subsidiary of the parent firm, while steadfastly implementing its plan to bring users the most optimal trading data. Besides, the merger affords Evtec the chance to take advantage of the shifts in the supply chain due to the pandemic and rising geopolitical frictions.
Evtec is capitalizing on the potential of the US market with their strategy of teaming up with prestigious brands and distribution networks to tap into higher-margin ventures made possible by vertical supply and a lower cost structure. They have engaged in talks with some of the world’s most renowned racing and performance industry giants, seeking to discover ways to increase profits and enhance their brand’s value.
Should either party opt to terminate the transaction before April 29, 2023, or execute a binding letter of intent or definitive agreement, a break-up fee of $500,000 will apply due to the non-binding letter of intent. The transaction’s successful completion is contingent upon the fulfilment of customary closing conditions such as obtaining regulatory, lender, and stockholder approval.
David Roberts, Chairman and CEO of Evtec, stated: “Blackboxstocks and the team offer us a tremendous pathway and structure to execute our vision for continued growth and global expansion. Our business is spring loaded to take advantage of the tremendous backlog in our industry and our large order book provides us with predictable revenue growth that will serve as a backbone for building a future supply chain for the performance, luxury and EV market automotive segment. With a strong pipeline of strategic opportunities backed by committed revenues, we are excited to leverage our new access to the capital markets to grow our business and drive shareholder value through synergy and growth.”
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