Blackboxstocks Inc. Signs Definitive Merger Agreement to Acquire Rare Earth Producer REalloys Inc.

Core Viewpoint - Blackboxstocks Inc. has entered into a definitive merger agreement to acquire REalloys Inc., positioning REalloys as a leader in rare earth magnet production in North America, which is critical for U.S. national defense and advanced technologies [1][2][3] Company Overview - Blackboxstocks Inc. is a financial technology and social media hybrid platform that provides real-time analytics for stock and options traders [9] - REalloys Inc. focuses on the development and production of rare earth elements, with its primary asset being the Hoidas Lake deposit in Saskatchewan, which is rich in critical rare earth materials [7] Merger Details - The merger values REalloys at approximately $400 million, with Blackbox stockholders retaining about 7.3% of the combined company's common shares post-merger [1][6] - Upon closing, REalloys' stockholders are expected to own approximately 92.7% of the combined company [6] - The merger is anticipated to close in the second quarter of 2025, subject to regulatory, lender, and stockholder approvals [6] Strategic Importance - REalloys aims to create a fully integrated mine-to-magnet supply chain in North America, reducing U.S. dependence on foreign suppliers for rare earth materials [2][3] - The company plans to deliver critical magnets to U.S. National Defense Stockpiles and key industries on an accelerated timeline, supporting national defense and infrastructure [3][7] Management and Governance - David Argyle is expected to become the CEO of the combined company, while Gust Kepler will continue as CEO of Blackbox.io, Inc., a subsidiary focused on fintech operations [6] - The board of directors for the combined company will include five members appointed by REalloys and one member appointed by Blackbox [6]