Shares of Blackboxstocks Inc. BLBX shot up 130.7% on heavy volume in afternoon trading Monday, after the provider of analytics for stock and options traders via its social media platform announced a deal that is effectively a reverse merger to privately held Evtec Group Ltd., a supplier of automotive aftermarket products. Trading volume rocketed to 13.9 million shares, compared with the full-day average over the past 30 days of about 38,100 shares. Blackboxstocks said after the deal closes, it will own 8.34% of the stock of the combined company. “Blackbox will continue operations in the fintech sector as a subsidiary of the parent company and will continue executing its strategic plan in its ongoing mission to provide its users with the best trading information possible,” said Blackbox Chief Executive Officer Gust Kepler. “However, we also believe that changes in the supply chain resulting from the pandemic and growing geo-political tensions are creating a unique opportunity for companies like Evtec. Evtec has the vision and resources to near-shore component manufacturing and provide its customers with long term certainty of critical parts and its shareholders with the prospect for higher returns.” Blackbox’s stock had now soared more than five-fold (up 407.5%) year to date, while the S&P 500 has gained 7.5%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.