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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________________________________________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
___________________________________________________________________
Date of Report (Date of earliest event reported): November
21, 2023
AULT ALLIANCE, INC.
(Exact name of registrant as specified in its charter)
Delaware |
|
001-12711 |
|
94-1721931 |
(State or other jurisdiction of
incorporation or organization) |
|
(Commission File Number) |
|
(I.R.S. Employer Identification No.) |
11411 Southern Highlands Parkway, Suite 240,
Las Vegas, NV 89141
(Address of principal executive offices) (Zip Code)
(949) 444-5464
(Registrant's telephone number, including area
code)
Check the appropriate box below if the Form 8-K
filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ Written
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨ Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b)
of the Act:
Title of each class |
|
Trading
Symbol(s) |
|
Name of each exchange on which registered |
Common Stock, $0.001 par value |
|
AULT |
|
NYSE American |
13.00% Series D Cumulative Redeemable Perpetual Preferred Stock, par value $0.001 per share |
|
AULT PRD |
|
NYSE American |
Indicate by check mark whether the registrant
is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the
Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ¨
If an emerging growth company, indicate by check
mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting
standards provided pursuant to Section 13(a) of the Exchange Act. ¨
| Item 5.03. | Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year. |
On November 15, 2023, Ault Alliance, Inc., a
Delaware corporation (the “Company”) filed a Certificate of Designations of Preferences, Rights and Limitations
of Series C Convertible Preferred Stock (the “Series C Certificate of Designations”) with the Secretary of State
of the State of Delaware to establish the preferences, limitations and relative rights of the Series C convertible preferred stock
(the “Series C Convertible Preferred Stock”).
The material terms of the Series C Convertible
Preferred Stock are summarized below.
Description of the Series C Convertible Preferred Stock
Conversion Rights
Each share of Series C Convertible Preferred Stock
has a stated value of $1,000.00 and is convertible into shares of the Company’s common stock, par value $0.001 per share (the “Common
Stock”) at a conversion price equal to the greater of (i) $0.10 per share (the “Floor Price”), and (ii) the
lesser of (A) $0.2098, which represents 105% of the volume weighted average price of the Common Stock during the ten trading days immediately
prior to November 6, 2023 (the “Execution Date”), or (B) 105% of the volume weighted average price of the Common Stock
during the ten trading days immediately prior to the date of conversion (the “Conversion Price”). The Conversion Price
is subject to adjustment in the event of an issuance of Common Stock at a price per share lower than the Conversion Price then in effect,
as well as upon customary stock splits, stock dividends, combinations or similar events. The Floor Price, however, shall not be adjusted
for stock dividends, stock splits, stock combinations or other similar transactions.
Voting Rights
The holders of the Series C Convertible Preferred
Stock are entitled to vote with the Common Stock as a single class on an as-converted basis, subject to applicable law provisions of the
Delaware General Company Law (the “DGCL”) and the NYSE American (the “Exchange”), provided however,
that for purposes of complying with Exchange regulations, the conversion price, for purposes of determining the number of votes the holder
of Series C Convertible Preferred Stock is entitled to cast, shall not be lower than $0.123 (the “Voting Floor Price”),
which represents the closing sale price of the Common Stock on the trading day immediately prior to the Execution Date. The Voting Floor
Price shall be adjusted for stock dividends, stock splits, stock combinations and other similar transactions.
In addition, after stockholder approval has been
obtained, Ault & Company, Inc., a Delaware corporation (the “Purchaser”) will be entitled to elect such number
of directors to the Company’s Board of Directors as shall be equal to a percentage determined by dividing (i) the number of shares
of Common Stock issuable upon conversion of the Series C Convertible Preferred Stock then owned by the Purchaser (the “Conversion
Shares”), by (ii) the sum of the number of shares of Common Stock then outstanding plus the number of Conversion Shares.
Dividend Rights
The holders of Series C Convertible Preferred
Stock are entitled to cumulative cash dividends at an annual rate of 9.5%, or $95.00 per share, based on the stated value per share. Dividends
shall accrue from the date of closing of the Securities Purchase Agreement dated November 6, 2023 by and between the Company and the Purchaser
(the “Closing Date”), until the 10-year anniversary of the Closing Date and are payable quarterly in arrears. For the
first two years, the Company may elect to pay the dividend amount in Common Stock rather than cash, with the number of shares of Common
Stock issued at the Conversion Price at the date that the dividend payment is due. Dividends will accrue regardless of the Company’s
earnings or funds availability and will not exceed the full cumulative dividends. If dividends are in arrears for one or more periods
where dividends are to be paid and the Purchaser is contractually required to pay any penalties or damages as a result of the failure
of the Company to pay such dividend, the dividend rate will increase to 12% per annum (equivalent to $120.00 per annum per share) and
will be paid either in cash or additional shares of Series C Convertible Preferred Stock (if the Common Stock is then listed on a national
securities exchange) or if not, freely tradeable Common Stock.
Liquidation Rights
In the event of liquidation, dissolution, or winding
up of the Company, the holders of Series C Convertible Preferred Stock have a preferential right to receive an amount equal to the stated
value per share of Series C Convertible Preferred Stock before any distribution to other classes of capital stock. If the assets are insufficient,
the distribution will be prorated among the holders of Series C Convertible Preferred Stock. The remaining assets will be distributed
pro rata to the holders of outstanding Common Stock and all holders of Series C Convertible Preferred Stock as if they had converted their
Series C Convertible Preferred Stock into Common Stock. The Series C Convertible Preferred Stock rank senior over other classes of preferred
stock, including the Series A, B and D Preferred Stock. Additionally, any transaction that constitutes a change of control transaction
shall be deemed to be a liquidation under the Series C Certificate of Designations.
The foregoing description of the Series C Certificate of Designations
does not purport to be complete and is subject to, and is qualified in its entirety by reference to, the full text of the document which
is attached hereto as Exhibit 3.1 to this Current Report on Form 8-K and is incorporated herein by reference.
| Item 9.01 | Financial Statements and Exhibits. |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|
AULT ALLIANCE, INC. |
|
|
|
|
|
|
|
Dated: November 21, 2023 |
/s/ Henry Nisser |
|
|
Henry Nisser
President and General Counsel |
|
-4-
Exhibit 3.1
DelawareThe First StatePage 1 6551776 8100Authentication: 204606135SR# 20233988486Date: 11-16-23You may verify this certificate online at corp.delaware.gov/authver.shtmlI, JEFFREY W. BULLOCK, SECRETARY OF STATE OF THE STATE OF DELAWARE, DO HEREBY CERTIFY THE ATTACHED IS A TRUE AND CORRECT COPY OF THE CERTIFICATE OF DESIGNATION OF "AULT ALLIANCE, INC.", FILED IN THIS OFFICE ON THE FIFTEENTH DAY OF NOVEMBER, A.D. 2023, AT 5:38 O`CLOCK P.M.
v3.23.3
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--12-31
|
Entity File Number |
001-12711
|
Entity Registrant Name |
AULT ALLIANCE, INC.
|
Entity Central Index Key |
0000896493
|
Entity Tax Identification Number |
94-1721931
|
Entity Incorporation, State or Country Code |
DE
|
Entity Address, Address Line One |
11411 Southern Highlands Parkway
|
Entity Address, Address Line Two |
Suite 240
|
Entity Address, City or Town |
Las Vegas
|
Entity Address, State or Province |
NV
|
Entity Address, Postal Zip Code |
89141
|
City Area Code |
(949)
|
Local Phone Number |
444-5464
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Common Stock, $0.001 par value |
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Title of 12(b) Security |
Common Stock, $0.001 par value
|
Trading Symbol |
AULT
|
Security Exchange Name |
NYSE
|
13.00% Series D Cumulative Redeemable Perpetual Preferred Stock, par value $0.001 per share |
|
Title of 12(b) Security |
13.00% Series D Cumulative Redeemable Perpetual Preferred Stock, par value $0.001 per share
|
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AULT PRD
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Security Exchange Name |
NYSE
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