Ault Alliance Closes on $8.8 Million Additional Senior Secured Debt Financing with Existing Lenders
21 July 2023 - 8:30PM
Business Wire
All Other Senior Secured Debt Repaid by the
Company
Ault Alliance, Inc. (NYSE American: AULT), a diversified holding
company (“Ault Alliance,” or the “Company”), is
pleased to announce that it, alongside several subsidiaries, has
successfully secured an additional $8.8 million in senior debt
financing (the “Loans”) from a group of existing
institutional lenders (the “Lenders”). The Company
previously borrowed $18.9 million from the Lenders in November
2022, which together with the new Loans, have an aggregate
outstanding amount of $24.3 million. The Loans mature on May 7,
2024, accumulate interest at a favorable annual rate of 8.5% and
are secured against select assets of the Company and certain of its
subsidiaries.
“Our relationship with the Lenders has proven to be a
significant asset to the growth and stability of Ault Alliance,”
said Milton “Todd” Ault III, Founder and Executive Chairman of the
Company. “The Lenders have consistently exhibited supportiveness
and a willingness to fuel our future growth endeavors. This
favorable borrowing rate is another testament to our
relationship.”
Kenneth S. Cragun, Chief Financial Officer, further added, “We
have paid off all other senior secured debts at the Company, and
the new Loans announced today provide needed working capital to
further strengthen our financial position. We are elated to
maintain such a solid senior lending relationship and feel
incredibly comfortable with the Lenders as our partners for future
ventures.”
Loan guarantees have been furnished by Ault Lending, LLC, a
subsidiary of the Company, Ault & Company, Inc., an affiliate
of the Company, as well as by Milton C. Ault, III, the Company’s
Executive Chairman and the Chief Executive Officer of Ault &
Company, Inc.
The proceeds from the Loans will primarily be deployed for
augmenting working capital and facilitating the general operational
needs of the Company. The new Loans were issued with an original
issue discount of $1.3 million.
For more information on Ault Alliance and its subsidiaries, Ault
Alliance recommends that stockholders, investors, and any other
interested parties read Ault Alliance’s public filings and press
releases available under the Investor Relations section at
www.Ault.com or available at www.sec.gov.
About Ault Alliance, Inc.
Ault Alliance, Inc. is a diversified holding company pursuing
growth by acquiring undervalued businesses and disruptive
technologies with a global impact. Through its wholly and
majority-owned subsidiaries and strategic investments, Ault
Alliance owns and operates a data center at which it mines Bitcoin
and provides mission-critical products that support a diverse range
of industries, including metaverse platform, oil exploration, crane
services, defense/aerospace, industrial, automotive,
medical/biopharma, consumer electronics, hotel operations and
textiles. In addition, Ault Alliance extends credit to select
entrepreneurial businesses through a licensed lending subsidiary.
Ault Alliance’s headquarters are located at 11411 Southern
Highlands Parkway, Suite 240, Las Vegas, NV 89141;
www.Ault.com.
Forward-Looking Statements
This press release contains “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. These forward-looking statements generally include
statements that are predictive in nature and depend upon or refer
to future events or conditions, and include words such as
“believes,” “plans,” “anticipates,” “projects,” “estimates,”
“expects,” “intends,” “strategy,” “future,” “opportunity,” “may,”
“will,” “should,” “could,” “potential,” or similar expressions.
Statements that are not historical facts are forward-looking
statements. Forward-looking statements are based on current beliefs
and assumptions that are subject to risks and uncertainties.
Forward-looking statements speak only as of the date they are
made, and the Company undertakes no obligation to update any of
them publicly in light of new information or future events. Actual
results could differ materially from those contained in any
forward-looking statement as a result of various factors. More
information, including potential risk factors, that could affect
the Company’s business and financial results are included in the
Company’s filings with the U.S. Securities and Exchange Commission,
including, but not limited to, the Company’s Forms 10-K, 10-Q and
8-K. All filings are available at www.sec.gov and on the Company’s
website at www.Ault.com.
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Ault Alliance Investor Contact: IR@Ault.com or
1-888-753-2235
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