Blackboxstocks Inc. Enters into Securities Purchase Agreement with Five Narrow Lane LP

Blackboxstocks Inc. (NASDAQ: BLBX) recently announced that on January 17, 2025, the company entered into a Securities Purchase Agreement with Five Narrow Lane LP. The agreement outlines the purchase of senior debentures by the Purchasers. The initial debentures amount to $250,000, with amended and restated senior secured convertible debentures at an aggregate principal amount of $2,000,000.

The initiation of the Securities Purchase Agreement led to the closing of the Initial Debentures (the “Initial Closing”). This phase occurred concurrently with the execution and delivery of the Purchase Agreement, subject to specific customary covenants and closing conditions. The Additional Debentures will close upon fulfillment of customary conditions, including the execution and delivery of a Security Agreement, a Subsidiary Guarantee, a Registration Rights Agreement, and a Merger Agreement.

The Purchase Agreement encompasses typical representations, warranties, covenants, confidentiality, and indemnification obligations commensurate with a transaction of this nature. The company liaised with Five Narrow Lane LP, including the Agent, throughout the process.

The Initial Debentures, which mature on either the Initial Debenture Trigger Date or March 15, 2025, come with 7.00% interest per annum. Prepayment options are available to the Company until the Initial Debenture Maturity Date. On the Initial Debenture Trigger Date, significant payouts are mandated, and conditions known as “Trigger Conditions” may lead to the exchange for Additional Debentures.

The Additional Debentures, with an aggregate principal amount of $2,000,000, are expected to be supported by initial funding through various stages of the process, involving payments upon milestones being reached. Furthermore, these debentures are geared towards achieving specified development objectives in alignment with the Purchase Agreement.

The agreements also comprise a Registration Rights Agreement, outlining obligations related to the filing and efficacy of registration statements. Alongside, Security Agreements and Subsidiary Guarantees were integrated as part of the structured financial transaction.

This restructuring initiative aims to fortify Blackboxstocks’ financial position and strategic development. The company has enlisted the expertise of Palladium Capital Group, LLC as the placement agent for the Additional Debentures, reflecting a prudent approach towards ensuring financial health and stability.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Blackboxstocks’s 8K filing here.

About Blackboxstocks

Blackboxstocks Inc develops and markets financial technology and social media hybrid platform. The company offers Blackbox System, a subscription-based software as a service that provides real-time proprietary analytics and news for stock and options traders. Blackboxstocks Inc is headquartered in Dallas, Texas.