Ault Alliance Provides Update on $40 Million Financing Arrangement with Ault & Company, Inc.

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Ault & Company has advanced $17.5 million towards its agreement to fund up to $40 million into Ault Alliance. The company has assumed $11.6 million of secured promissory notes, $4.6 million of loans, and $1.3 million of convertible preferred stock. Regulatory approval is pending for the issuance of preferred stock and warrants. Ault & Company anticipates funding the remaining $22.5 million in cash. The company is committed to completing the agreement and believes in the growth potential of its diversified holdings.

Ault & Company Has Advanced $17.5 Million to Date Towards Its Agreement to Fund Up to $40 Million Into Ault Alliance

LAS VEGAS--(BUSINESS WIRE)-- Ault Alliance, Inc. (NYSE American: AULT), a diversified holding company (“Ault Alliance” or the “Company”) today provided an update that Ault & Company, Inc., a related party (“Ault & Company”) has advanced and assumed $17.5 million to date towards the previously announced agreement to fund up to $40 million into the Company.

The advancement and assumption to date from Ault & Company of $17.5 million represents approximately $11.6 million of secured promissory notes previously issued by the Company, which have been assumed by Ault & Company, for which the Company has issued term notes to Ault & Company in the same amount, which Ault & Company has agreed to cancel, $4.6 million of loans made by Ault & Company to the Company pursuant to a credit agreement entered into between the parties in June 2023, which Ault & Company has agreed to cancel, and $1.3 million related to 125,000 outstanding shares of the Company’s Series B convertible preferred stock at stated value that Ault & Company has committed to surrendering to the Company for retirement. Pursuant to the agreement entered into between Ault Alliance and Ault & Company, the Company would issue preferred stock and warrants to Ault & Company for these advances and assumptions, which has not occurred to date, as the Company has not received regulatory approval, and which will expire by its terms on September 30, 2023. The Company is committed to completing the agreement in principle and continues to work with the regulatory authorities to find an acceptable solution. Once regulatory approval is obtained as it relates to this initial tranche, Ault & Company anticipates that up to the remaining $22.5 million of commitments will be funded in cash, for a total investment of $40 million.

Milton “Todd” Ault, III, Executive Chairman of Ault Alliance and Chief Executive Officer of Ault & Company, stated, “With a $17.5 million advancement over the last few months, we are staking our belief in the intrinsic value of the Company’s assets - from the crane business to the data center, including Bitcoin mining, and key investments under the Ault Venture Group umbrella. With Ault & Company’s intent to invest up to $40 million in total, we are demonstrating Ault & Company’s and its principals’, some of whom are also principals of the Company, dedication, and the vision for the future of the Company. We firmly believe in the Company’s trajectory and the growth potential its diversified holdings.”

This press release does not constitute an offer to sell or the solicitation of an offer to buy the securities, nor will there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such jurisdiction.

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 available 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 its 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

Source: Ault Alliance, Inc.