Ault Alliance Announces Termination of At-The-Market Offering and Embarks on Path to Corporate Restructuring
March 13 2024 - 8:00AM
Business Wire
Ault Alliance, Inc. (NYSE American: AULT), a diversified holding
company (“Ault Alliance,” or the “Company”), today
announced the termination of its at-the-market issuance sales
agreement for sales of its common stock (“ATM”) and also
announced its commitment to not utilize an ATM for sales of its
common stock for not only the duration of 2024 but the foreseeable
future. The Company may, however, consider issuing non-convertible
debt to continue to fund its operations until its revenues can
cover such costs.
Further, the Company plans to restructure ownership of its
operating businesses to create a more simple, efficient and
understandable organizational chart. Once complete, the Company
will have two reporting segments, consisting of Sentinum, Inc.
(“Sentinum”) and Ault Capital Group, Inc. (“Ault
Capital”). Sentinum runs data center operations, including
bitcoin mining, while Ault Capital contains all other entities such
as Circle 8 Crane Services, LLC, Giga-tronics Incorporated, Ault
Lending, LLC, and other legacy entities.
Milton “Todd” Ault III, Founder and Executive Chairman of Ault
Alliance, provided comments on the Company’s strategic direction,
emphasizing the importance of today’s announcement, “Today marks a
pivotal moment for Ault Alliance as we conclude our ATM program and
fundamentally reevaluate our financing strategy. We have
accumulated a nearly $400 million asset base and will continue to
work on bridging the gap between our public valuation and the true
value of the underlying assets. This strategic shift is not merely
about changing our financing approach; it’s a testament to our
unwavering dedication to maximizing stockholder value and securing
a robust financial future for the Company. By streamlining our
operations and strategically leveraging our legacy investments, we
are not just simplifying our structure but are paving the way for
sustainable growth and innovation. Our focus now intensifies on
Sentinum and Ault Capital, aiming to fuel their expansion through
thoughtful and strategic financing methods, which include the
ongoing funding from Ault & Company, Inc., through the Series C
preferred stock investment. I am excited about this new chapter in
Ault Alliance’s story and firmly believe that these changes will
bring substantial benefits to our stockholders, enhance our market
position, and set a solid foundation for future prosperity.”
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 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 a 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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