Ault Alliance, Inc. (NYSE American: AULT), a manufacturer of electronic components, announced today the sale of additional equity securities, continuing its capital-raising efforts initiated last year. On Monday, the company disclosed the sale of 300 shares of Series C convertible preferred stock and accompanying warrants to Ault & Company, Inc., an affiliated entity, for a total of $300,000.
This transaction is part of a larger agreement dated November 6, 2023, which allows for the purchase of up to $75 million of Series C Convertible Preferred Stock and Series C Warrants. To date, Ault & Company, Inc. has acquired 44,300 shares of preferred stock and warrants to purchase approximately 13.1 million shares of Ault Alliance's common stock, amounting to $44.3 million in aggregate purchase price.
The Series C Convertible Preferred Stock and the Series C Warrants were offered in a private transaction, exempt from registration under Section 4(a)(2) of the Securities Act of 1933. This exemption is typically used for transactions by an issuer not involving any public offering.
Ault Alliance, previously known as BitNile Holdings, Inc., Ault Global Holdings, Inc., and DPW Holdings, Inc., has changed its name several times, with the most recent change occurring in December 2021. The company's common stock and 13.00% Series D Cumulative Redeemable Perpetual Preferred Stock are both traded on the NYSE American under the symbols "AULT" and "AULT PRD," respectively.
The company's engagement in raising capital through equity sales is part of its broader strategy to finance its operations and expansion. The sale of preferred stock to an affiliate suggests a continued commitment by the company's insiders to support its financial needs.
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