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Ault Alliance, Inc. has secured $44 million in investments from Ault & Company under a Securities Purchase Agreement, with a potential total investment of $75 million. The funding will support the company's growth plans and strategic initiatives across its core businesses, including Sentinum data centers and Circle 8 crane rentals.
Ault Alliance, Inc. ha ottenuto un investimento di 44 milioni di dollari da parte di Ault & Company secondo un Accordo di Acquisto di Titoli, con un investimento totale potenziale di 75 milioni di dollari. I fondi supporteranno i piani di crescita della società e le iniziative strategiche nei suoi settori principali, inclusi i centri dati Sentinum e il noleggio di gru Circle 8.
Ault Alliance, Inc. ha asegurado una inversión de $44 millones de Ault & Company bajo un Acuerdo de Compra de Valores, con una inversión total potencial de $75 millones. La financiación apoyará los planes de crecimiento de la empresa y las iniciativas estratégicas en sus negocios principales, incluidos los centros de datos Sentinum y el alquiler de grúas Circle 8.
Ault Alliance, Inc.는 Ault & Company로부터 증권 구매 계약에 따라 4천4백만 달러의 투자를 확보하였으며, 총 투자액은 7천5백만 달러에 이를 수 있습니다. 이 자금은 회사의 성장 계획과 핵심 사업 분야에서의 전략적 이니셔티브를 지원할 것입니다, 여기에는 Sentinum 데이터 센터와 Circle 8 크레인 대여가 포함됩니다.
Ault Alliance, Inc. a sécurisé un investissement de 44 millions de dollars de la part de Ault & Company sous un Accord d'Achat de Titres, avec un investissement total potentiel de 75 millions de dollars. Le financement soutiendra les plans de croissance de l'entreprise et les initiatives stratégiques à travers ses activités principales, y compris les centres de données Sentinum et la location de grues Circle 8.
Ault Alliance, Inc. hat 44 Millionen Dollar an Investitionen von Ault & Company im Rahmen eines Wertpapierkaufvertrags gesichert, mit einem potenziellen Gesamtinvestitionsvolumen von 75 Millionen Dollar. Die Finanzierung wird die Wachstumspläne des Unternehmens und strategische Initiativen in seinen Kerngeschäften unterstützen, einschließlich der Sentinum-Datenzentren und Circle 8-Kranvermietungen.
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Insights
The investment of $44 million from Ault & Company into Ault Alliance signifies a significant confidence boost from an affiliate, potentially strengthening Ault Alliance's balance sheet. Such capital injections are essential for funding strategic initiatives and could be a positive signal to investors about the company's future growth prospects. Ault Alliance's emphasis on the high-demand areas like artificial intelligence data centers, crane rentals and its investment and lending verticals appears to align with industry trends favoring technological infrastructure expansion. The projected revenue of over $200 million marks a substantial increase from previous years, indicating scalability and effective business strategy execution. Investors should monitor how effectively Ault Alliance deploys this capital towards its stated goals, as this will be indicative of management's operational efficiency and might influence the company's valuation.
The growth narrative for Ault Alliance, highlighted by their expansion in the artificial intelligence data center space, reflects a broader market trend where increasing computational demands drive growth. The sector is characterized by a high entry barrier due to substantial initial capital outlays and Ault Alliance's capital infusion from Ault & Company could provide a competitive edge by enabling them to scale operations and infrastructure. For investors, the critical factor will be the company's ability to capitalize on market demands and turn the investment into profitable growth, which could, in turn, lead to an appreciation in stock value. Furthermore, the company's diversification in crane rentals and financial services sectors can potentially mitigate risk and add stability to their revenue streams. It's important for investors to consider how these segments complement the company's primary growth focus in data centers and analyze how synergy between these businesses could affect future performance.
Ault Alliance's strategic focus on the Sentinum data centers is timely, as the need for advanced data processing capabilities escalates alongside the growth of artificial intelligence. Data centers are at the core of the tech ecosystem and robust and efficient data centers are critical for supporting the increasing workloads of AI applications. The investment from Ault & Company may enable Ault Alliance to invest in state-of-the-art facilities and technology, which could translate into competitive service offerings in the AI data center market. However, it is essential to assess not just the investment but also the company's approach to innovation, as well as its ability to secure and retain clients in a highly competitive field. For shareholders and potential investors, the proof will be in the company's execution of its expansion plans and its subsequent impact on market share and revenue growth.
Ault & Company May Invest up to $75 Million
LAS VEGAS--(BUSINESS WIRE)--
Ault Alliance, Inc. (NYSE American: AULT), a diversified holding company (“Ault Alliance,” or the “Company”), today announced Ault & Company, Inc. (“Ault & Company”), an affiliate of the Company, has invested a total of $44.0 million pursuant to the Securities Purchase Agreement (the “Agreement”) entered into between the Company and Ault & Company on November 6, 2023. To date, Ault & Company has purchased an aggregate of 44,000 shares of Series C convertible preferred stock (“Series C Preferred Stock”) and warrants (“Series C Warrants”) to purchase an aggregate of approximately 13.0 million shares of the Company. Under the Agreement, as amended, Ault & Company can invest up to $75.0 million in the Series C Preferred Stock and Series C Warrants in multiple closings.
Milton “Todd” Ault, III, the Company’s Executive Chairman and the Chief Executive Officer of Ault & Company, stated, “This strategic infusion of capital into the Company underscores our strong confidence in the growth trajectory and future prospects of Ault Alliance. This investment not only strengthens our balance sheet but also enhances our ability to accelerate our strategic initiatives and expand our market presence. When I started this journey with the Company in 2017, we had just reported less than $8 million in annual sales, and today we are projecting annual revenue in excess of $200 million for the current fiscal year as we focus on our core businesses: Sentinum data centers; Circle 8 crane rentals; and investing and lending. We believe our Sentinum business is well positioned for growth with the increasing demand for power in the artificial intelligence data center space. Ault & Company believes in the Company’s plans for growth and expects to make additional investments to support these key businesses.”
Mr. Ault added that, “This partnership with Ault & Company reflects a shared vision for the future of Ault Alliance. We are poised to make significant advances in our business sectors and look forward to a fruitful collaboration. We are excited about the opportunities this partnership creates and are confident that it will lead to enhanced value for our stockholders.”
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 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.
