Ault Alliance Retains ShareIntel to Investigate Naked Short Selling Activity

Rhea-AI Summary

Ault Alliance has partnered with Shareholder Intelligence Services to investigate potential illegal short selling activities in its common stock. ShareIntel will use its DRIL-Down™ process to track stockholder ownership and monitor trading activity. The company suspects market manipulation involving illegal short selling and is committed to investigating and exposing any wrongdoing.

Positive

• Ault Alliance is taking steps to identify and address potential illegal short selling activities in its stock. This could help protect investors and maximize stockholder value.

Negative

• The company suspects that its stock may have been the target of a market manipulation scheme involving illegal short selling, which could have artificially depressed its market stock price.

LAS VEGAS--(BUSINESS WIRE)-- Ault Alliance, Inc. (NYSE American: AULT), a diversified holding company (“Ault Alliance,” or the “Company”) announced today that it has entered into a service agreement with Shareholder Intelligence Services, LLC (“ShareIntel”) to assist the Company to determine if there is illegal short selling activities in its common stock. ShareIntel will utilize its patented process called DRIL-Down™, a compliance driven service-as-a-software program designed for public companies to track stockholder ownership and monitor critical broker-dealer and stockholder movement, to investigate and report on potential illegal naked short selling activities of the Company’s stock. ShareIntel will aggregate and analyze repository data from reporting entities, broker-dealers and stockholders, enabling the Company to identify parties to possible aberrant or unusual trading activity and assist the Company to deploy corrective action steps to help curtail such activity.

“Based on the trading pattern of the stock, we are concerned that our company may have been the target of a market manipulation scheme involving illegal short selling of our stock over the past year, and we are committed to investigating and exposing any wrongdoing,” said Milton “Todd” Ault, III, the Executive Chairman of Ault Alliance. “By working with ShareIntel, we may find potential reporting anomalies among market makers, banks, broker-dealers and clearing firms, including efforts to artificially depress our market stock price. Investigating and attempting to remedy any wrongdoing would support our continuing commitment to protect our investors and maximize stockholder value. The Company believes such manipulation to be completely unacceptable, as it distorts the value of the targeted companies and negatively impacts the stockholders who have invested their hard-earned money.”

David Wenger, President and Chief Executive Officer of ShareIntel, stated, “We look forward to helping Ault Alliance identify parties that may be engaging in abusive and illegal naked short selling.”

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 colocation and offers 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230728746789/en/

Ault Alliance Investor Contact:

IR@ault.com or 1-888-753-2235

Source: Ault Alliance, Inc.

FAQ

What is Ault Alliance investigating?

Ault Alliance is investigating potential illegal short selling activities in its common stock.

Who is assisting Ault Alliance in the investigation?

Ault Alliance has partnered with Shareholder Intelligence Services, LLC.

What process will ShareIntel use?

ShareIntel will use its patented DRIL-Down™ process to track stockholder ownership and monitor trading activity.

Why is Ault Alliance concerned about market manipulation?

Ault Alliance suspects that its stock may have been the target of a market manipulation scheme involving illegal short selling, which could artificially depress its market stock price.

What is the goal of the investigation?

The goal of the investigation is to identify parties engaged in abusive and illegal naked short selling and take corrective action to protect investors and maximize stockholder value.