Ault Global (NYSEAMERICAN:DPW) Enters Into $25 Million Financing Agreement with Ault & Company

Ault Global (NYSEAMERICAN:DPW) recently entered into a Securities Purchase Agreement with Ault & Company, Inc., a related party, to facilitate a financing arrangement of up to $25 million. The agreement, signed on December 21, 2024, stipulates the sale of up to 25,000 shares of Series G convertible preferred stock (Series G Convertible Preferred Stock) and warrants to purchase shares of the Company’s Class A common stock, for a total sum of $25 million.

The Purchaser, in this case, being an affiliate of the Company, the consummation of this transaction is subject to customary closing conditions, regulatory approvals, and Stockholder Approval. The closing of the Financing is also contingent on the Purchaser securing the necessary financing for the transaction.

The Series G Convertible Preferred Stock has a stated value of $1,000 per share and comes with conversion rights that allow it to be convertible into Common Stock. Holders of the Series G Convertible Preferred Stock are entitled to various rights, including voting rights and dividend entitlements.

Furthermore, under the terms of the Agreement, the Purchaser may elect directors to the Board of Directors based on the number of Conversion Shares they hold.

In addition to the Preferred Stock, Ault & Company will receive warrants to purchase Common Stock at a specified Exercise Price. The Financing’s main purposes include supporting infrastructure upgrades for the MI data center, repayment of outstanding debts, and general working capital needs.

“The conversion price of the Preferred Shares is nearly a 25% premium over the current market price,” stated Milton “Todd” Ault III, Executive Chairman of Hyperscale Data and Chairman & CEO of Ault & Company.

The Company provided additional details regarding the terms of the Agreement, the Preferred Shares, and the Financing in a press release issued on December 23, 2024. This press release is filed with the Securities and Exchange Commission and is available for public review.

The Company also emphasized that the transactions discussed involved forward-looking statements and encouraged investors to review all relevant filings for a comprehensive understanding of the Company and its subsidiaries’ operations.

For further information on Ault Global and its subsidiaries, interested parties are advised to refer to its public filings and press releases accessible through its Investor Relations section on hyperscaledata.com or the SEC’s website.

This summarizes the recent significant financial development at Ault Global, reflecting its ongoing efforts to secure funding for strategic initiatives and propel growth prospects.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Ault Global’s 8K filing here.

About Ault Global

Ault Global Holdings, Inc engages in the design, development, manufacture, and sale of customized and flexible power system solutions for the medical, military, telecom, and industrial markets. It operates through the following segments: DPC, DPL, Enertec, Digital Farms, and I.AM. The DPC segment includes Microphase, Coolisys, Power-Plus, and DP Lending.