Ault Alliance enters $40M financing from affiliate via convertible preferred and warrants

Hyperscale Data, Inc.

Up to $40M from Ault & Company via 40,000 shares of Series C convertible preferred stock at $1,000 stated value each.
Conversion price floored at $0.10, with full ratchet anti-dilution; warrants for up to 400M common shares at $0.10, 5-year term.
Preferred shares pay 9.5% annual dividend; Company may pay in common stock for first two years.
Proceeds to repay debt, expand Bitcoin mining facilities, and for working capital.
Closing expected by May 31, 2023, subject to customary conditions and A&C obtaining sufficient financing.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

Hyperscale Data, Inc. entered into Securities Purchase Agreement with Ault & Company, Inc. valued at up to $40,000,000.00 (effective 2023-05-01).

Action: entry
Agreement: equity purchase
Counterparty: Ault & Company, Inc.
Value: up to $40,000,000.00
Effective: 2023-05-01

Exact text from the filing

On May 1, 2023 (the “ Execution Date ”), Ault Alliance, Inc., a Delaware corporation (the “ Company ”) entered into a Securities Purchase Agreement (the “ Agreement ”) with Ault & Company, Inc., a Delaware corporation (the “ Purchaser ”), pursuant to which the Company agreed to sell to the Purchaser up to 40,000 shares of Series C convertible preferred stock (the “ Series C Convertible Preferred Stock ”), and warrants (the “ Series C Warrants ”) to purchase shares of the Company’s common stock, par value $0.001 per share (the “ Common Stock ”) for a total purchase price of up to $40,000,000.00 (the “ Financing ”).

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Hyperscale Data, Inc. filing history →

Source: SEC EDGAR

accession 0001214659-23-006372

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