Hyperscale Data, Inc. (GPUS): debt financing — Ault Alliance restructures $17.5M liabilities via convertible note and warrants to affiliate Ault & Company

Hyperscale Data, Inc.

Issued $17.5M senior secured convertible note to A&C, 10% interest, due Oct 2028, convertible at floor $0.10 or 105% of prior close.
Warrants to purchase 47.7M shares at $0.1837, exercisable for 5 years after 6-month lock-up.
Purchase price paid by canceling $4.6M loans, assuming $11.6M secured notes, retiring $1.3M Series B preferred stock.
Conversion/exercise limited to 19.99% of outstanding shares unless stockholder approval obtained; subject to NYSE American approval.
Milton Todd Ault, III states the restructuring reflects A&C's commitment to help AAI meet financial commitments.

item 1.01 item 2.03 item 3.02 item 7.01 item 9.01

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.95

Hyperscale Data, Inc. incurred senior notes of $17,519,832 with Ault & Company, Inc. at 10% per annum maturing October 12, 2028.

Instrument: senior notes
Principal: $17,519,832
Counterparty: Ault & Company, Inc.
Rate: 10% per annum
Maturity: October 12, 2028
Event: incurrence

Exact text from the filing

On October 13, 2023 (the “ Closing Date ”), Ault Alliance, Inc., a Delaware corporation (the “ Company ”) entered into a Note Purchase Agreement (the “ Agreement ”) with Ault & Company, Inc., a Delaware corporation (the “ Purchaser ”), pursuant to which the Company sold to the Purchaser (i) a senior secured convertible promissory note in the principal face amount of $17,519,832 (the “ Note ”) and warrants (the “ 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 $17,519,832 (the “ Transaction ”).

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

Hyperscale Data, Inc. entered into Note Purchase Agreement with Ault & Company, Inc. valued at $17,519,832 (effective 2023-10-13).

Action: entry
Agreement: notes offering
Counterparty: Ault & Company, Inc.
Value: $17,519,832
Effective: 2023-10-13

Exact text from the filing

pursuant to which the Company sold to the Purchaser (i) a senior secured convertible promissory note in the principal face amount of $17,519,832

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10 debt financings filed in the last 30 days. Browse all debt financings →

Hyperscale Data, Inc. filing history →

Source: SEC EDGAR

accession 0001214659-23-013465

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