Ault Alliance Provides Update on $40 Million Financing Arrangement with Ault & Company, Inc.
29 September 2023 - 8:30PM
Business Wire
Ault & Company Has Advanced $17.5 Million to Date Towards
Its Agreement to Fund Up to $40 Million Into Ault Alliance
Ault Alliance, Inc. (NYSE American: AULT), a diversified holding
company (“Ault Alliance” or the “Company”) today
provided an update that Ault & Company, Inc., a related party
(“Ault & Company”) has advanced and assumed $17.5
million to date towards the previously announced agreement to fund
up to $40 million into the Company.
The advancement and assumption to date from Ault & Company
of $17.5 million represents approximately $11.6 million of secured
promissory notes previously issued by the Company, which have been
assumed by Ault & Company, for which the Company has issued
term notes to Ault & Company in the same amount, which Ault
& Company has agreed to cancel, $4.6 million of loans made by
Ault & Company to the Company pursuant to a credit agreement
entered into between the parties in June 2023, which Ault &
Company has agreed to cancel, and $1.3 million related to 125,000
outstanding shares of the Company’s Series B convertible preferred
stock at stated value that Ault & Company has committed to
surrendering to the Company for retirement. Pursuant to the
agreement entered into between Ault Alliance and Ault &
Company, the Company would issue preferred stock and warrants to
Ault & Company for these advances and assumptions, which has
not occurred to date, as the Company has not received regulatory
approval, and which will expire by its terms on September 30, 2023.
The Company is committed to completing the agreement in principle
and continues to work with the regulatory authorities to find an
acceptable solution. Once regulatory approval is obtained as it
relates to this initial tranche, Ault & Company anticipates
that up to the remaining $22.5 million of commitments will be
funded in cash, for a total investment of $40 million.
Milton “Todd” Ault, III, Executive Chairman of Ault Alliance and
Chief Executive Officer of Ault & Company, stated, “With a
$17.5 million advancement over the last few months, we are staking
our belief in the intrinsic value of the Company’s assets - from
the crane business to the data center, including Bitcoin mining,
and key investments under the Ault Venture Group umbrella. With
Ault & Company’s intent to invest up to $40 million in total,
we are demonstrating Ault & Company’s and its principals’, some
of whom are also principals of the Company, dedication, and the
vision for the future of the Company. We firmly believe in the
Company’s trajectory and the growth potential its diversified
holdings.”
This press release does not constitute an offer to sell or the
solicitation of an offer to buy the securities, nor will there be
any sale of the securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to the registration or
qualification under the securities laws of such jurisdiction.
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 offers colocation and hosting services for the emerging
artificial intelligence ecosystems and other industries, and
provides mission-critical products that support a diverse range of
industries, including a 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 its 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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