09:23 AM EST, 01/22/2025 (MT Newswires) -- Blackboxstocks ( BLBX ) said Wednesday it finalized an agreement with Five Narrow Lane for financing of up to $2 million in senior secured convertible debentures, with an initial funding of $250,000 completed on Jan. 17.

The company said the financing, which carries a 7% annual interest rate, is tied to milestones related to a potential merger. The remaining $1.75 million will be issued in stages, contingent on actions including signing a merger agreement and regulatory filings, it added.

The debentures mature within 12 months or at the merger's completion, whichever occurs first, Blackboxstocks ( BLBX ) said.

The company said debenture holders may convert their investments into common stock at 175% of the prior day's market price, with a minimum conversion price of $5 per share. Conversion is capped to limit ownership stakes to under 10% unless reduced to 5% at the holder's discretion, Blackboxstocks ( BLBX ) added.

Last week, Blackboxstocks ( BLBX ) said it terminated its merger deal with Evtec Aluminium and was exploring other merger possibilities.

Shares of the company were up more than 93% in recent Wednesday premarket activity.