Dallas-based Blackboxstocks, a publicly traded financial technology and social media hybrid platform offering real-time proprietary analytics for stock and options traders, has agreed to merge with Euclid-based REalloys, which is focused on the development and production of rare earth elements.
Upon closing and with a valuation of $400 million for REalloy, it is anticipated Blackbox’s stockholders will own approximately 7.3 percent of the combined companies while and REalloys’ stockholders will own 92.7 percent.
REalloy CEO David Argyle will assume the role of CEO of the combined company, while Gust Kepler will continue as CEO of Blackbox.io, Inc., a subsidiary formed to continue that company's fintech operations. REalloys will appoint five members and current management of Blackbox will appoint one member to the board of directors of the post-merger company.
The deal is intended to position REalloys to become one of North America’s fully integrated leaders in rare earth high-performance magnet production.
REalloys’ management anticipates its operation will become a cornerstone of the U.S. protected market supply chain. The Company believes that the Merger is a transformative leap towards a fully integrated, mine-to-magnet supply chain in North America. REalloys is committed to its “America First” principle, leveraging cutting-edge efficiency to provide a reliable, scalable supply of rare earth materials amid global uncertainty, with the aim reducing U.S. dependence on foreign suppliers.
“REalloys plans to deliver mission-critical magnets to U.S. National Defense Stockpiles and key industries on an accelerated timeline,” Argyle said in a statement. “The United States is reclaiming its dominance in the rare earth and critical minerals arena, and we believe REalloys is well-positioned to be at the forefront of this pivotal shift. We believe this partnership with Blackbox marks an important moment for America’s rare earth production independence.”
