Ault & Company, Inc. Announces Abandonment of Dutch Tender Offer to Acquire Shares of Common Stock of Hyperscale Data, Inc.
Ault & Company has announced the abandonment of its planned cash tender offer to purchase up to 111,000 shares of Hyperscale Data's Class A Common Stock, which was initially proposed at a price range of $7.50 to $10.00 per share. Instead, the company will pursue a new securities purchase agreement that grants them the right to acquire up to $25 million in Hyperscale Data's Series G Convertible Preferred Stock.
The company maintains that Hyperscale Data's current stock price is below its long-term intrinsic value and views the preferred shares investment as a demonstration of their continued support. Ault & Company, along with its affiliates, currently owns approximately 91.7% of Hyperscale Data's outstanding common stock, primarily through Series C Convertible Preferred Stock and warrants.
Ault & Company ha annunciato l'abbandono dell'offerta pubblica di acquisto in contante prevista per l'acquisto di fino a 111.000 azioni delle azioni ordinarie di Hyperscale Data di Classe A, inizialmente proposta a un prezzo compreso tra 7,50 e 10,00 dollari per azione. Invece, la società perseguirà un nuovo accordo di acquisto di titoli che conferisce loro il diritto di acquisire fino a 25 milioni di dollari delle azioni privilegiate convertibili di Serie G di Hyperscale Data.
La società sostiene che il prezzo attuale delle azioni di Hyperscale Data è al di sotto del suo valore intrinseco a lungo termine e considera l'investimento in azioni privilegiate come una dimostrazione del proprio continuo supporto. Ault & Company, insieme alle sue affiliate, possiede attualmente circa 91,7% delle azioni ordinarie in circolazione di Hyperscale Data, principalmente attraverso azioni privilegiate convertibili di Serie C e warrant.
Ault & Company ha anunciado el abandono de su oferta de compra en efectivo planificada para adquirir hasta 111,000 acciones de las acciones comunes Clase A de Hyperscale Data, que se proponía inicialmente a un rango de precio de $7.50 a $10.00 por acción. En cambio, la empresa buscará un nuevo acuerdo de compra de valores que les otorga el derecho a adquirir hasta $25 millones en acciones preferentes convertibles de Serie G de Hyperscale Data.
La empresa sostiene que el precio actual de las acciones de Hyperscale Data está por debajo de su valor intrínseco a largo plazo y ve la inversión en acciones preferentes como una demostración de su continuo apoyo. Ault & Company, junto con sus afiliados, posee actualmente aproximadamente 91.7% de las acciones ordinarias en circulación de Hyperscale Data, principalmente a través de acciones preferentes convertibles de Serie C y warrants.
Ault & Company는 Hyperscale Data의 클래스 A 보통주 111,000주를 인수하기 위해 계획된 현금 공모를 포기한다고 발표했습니다. 초기 제안가는 주당 7.50달러에서 10.00달러 사이였습니다. 대신, 이 회사는 Hyperscale Data의 G 시리즈 전환 우선주를 최대 2,500만 달러까지 인수할 수 있도록 하는 새로운 증권 구매 계약을 추진할 것입니다.
회사는 Hyperscale Data의 현재 주가가 장기 본질 가치보다 낮다고 주장하며, 우선주 투자를 지속적인 지원의 증거로 보고 있습니다. Ault & Company는 그 계열사들과 함께 현재 Hyperscale Data의 발행된 보통주 약 91.7%를 소유하고 있으며, 주로 C 시리즈 전환 우선주와 워런트를 통해 보유하고 있습니다.
Ault & Company a annoncé l'abandon de son offre publique d'achat en espèces prévue pour acquérir jusqu'à 111 000 actions des actions ordinaires de Classe A de Hyperscale Data, qui avait initialement été proposée à un prix allant de 7,50 à 10,00 dollars par action. Au lieu de cela, la société s'orientera vers un nouvel accord d'achat de titres qui leur accorde le droit d'acquérir jusqu'à 25 millions de dollars d'actions privilégiées convertibles de Série G de Hyperscale Data.
La société soutient que le prix actuel des actions de Hyperscale Data est inférieur à sa valeur intrinsèque à long terme et considère l'investissement dans les actions privilégiées comme une démonstration de son soutien continu. Ault & Company, avec ses filiales, possède actuellement environ 91,7% des actions ordinaires en circulation de Hyperscale Data, principalement par le biais d'actions privilégiées convertibles de Série C et de bons de souscription.
Ault & Company hat den Verzicht auf sein geplantes Barangebot zur Übernahme von bis zu 111.000 Aktien der Hyperscale Data der Klasse A angekündigt, das ursprünglich zu einem Preisbereich von 7,50 bis 10,00 Dollar pro Aktie vorgeschlagen wurde. Stattdessen wird das Unternehmen eine neue Wertpapierkaufvereinbarung anstreben, die ihnen das Recht einräumt, bis zu 25 Millionen Dollar an umwandelbare Vorzugsaktien der Serie G von Hyperscale Data zu erwerben.
Das Unternehmen ist der Ansicht, dass der aktuelle Aktienkurs von Hyperscale Data unter seinem langfristigen inneren Wert liegt, und betrachtet die Investition in Vorzugsaktien als ein Zeichen ihrer fortdauernden Unterstützung. Ault & Company besitzt zusammen mit seinen verbundenen Unternehmen derzeit etwa 91,7% der ausgegebenen Stammaktien von Hyperscale Data, hauptsächlich über Vorzugsaktien der Serie C und Optionen.
- Secured rights to purchase up to $25 million in Series G Convertible Preferred Stock
- Already holds significant control with 91.7% ownership stake
- Abandonment of planned tender offer indicates change in acquisition strategy
- Current stock price trading below company's perceived intrinsic value
Insights
The abandonment of Ault & Company's Dutch tender offer for Hyperscale Data shares marks a strategic pivot in their investment approach. Instead of pursuing direct share purchases at <money>$7.50-$10.00</money> per share, they're opting for a <money>$25 million</money> Series G Convertible Preferred Stock investment. This shift is particularly notable given Ault's already substantial <percent>91.7%</percent> beneficial ownership stake.
The move to preferred shares over common stock suggests a more complex financial strategy: preferred shares typically offer fixed dividends and superior claims on assets, while potentially providing conversion rights that could increase their equity stake further. This structured approach allows Ault to maintain control while providing Hyperscale with needed capital, though it may signal concerns about immediate market conditions or valuation.
For minority shareholders, this development carries mixed implications. While the abandoned tender offer removes an immediate premium opportunity, the substantial preferred share investment demonstrates continued confidence in Hyperscale's long-term prospects. However, the potential dilution effect from future preferred share conversions warrants careful monitoring.
The transaction structure revision reflects sophisticated securities law considerations. Abandoning the Dutch tender offer in favor of a preferred stock purchase agreement demonstrates careful regulatory navigation, particularly given the existing high ownership concentration. This approach likely helps address potential Securities Exchange Act compliance concerns while maintaining strategic flexibility.
The explicit mention of potential future tender offers being subject to board and regulatory approvals indicates proper corporate governance awareness. However, the <percent>91.7%</percent> ownership concentration already held by Ault and affiliates raises interesting questions about minority shareholder rights and fiduciary obligations. The disclosure of key personnel's roles (Executive Chairman, CEO, President) holding significant ownership positions through various instruments (preferred stock, warrants) appropriately addresses transparency requirements while highlighting potential governance considerations.
LAS VEGAS, Jan. 02, 2025 (GLOBE NEWSWIRE) -- Ault & Company, Inc. (“Ault & Company”), today announced its abandonment of its planned cash tender offer to purchase up to 111,000 shares of Class A Common Stock,
Ault & Company continues to believe that the current stock price of the Common Stock is below Hyperdrive Data’s long-term intrinsic value per share and believes that an investment in the Preferred Shares demonstrates the continued commitment of Ault & Company to supporting Hyperscale Data and its stockholders. Ault & Company may consider revisiting a tender offer once the purchase of the Preferred Shares is completed, however there can be no assurance thereof. Any potential future tender offer would be subject to Ault & Company board approval (including an evaluation of the then current market price of the Common Stock), regulatory approval and other customary closing conditions. Details regarding any potential future tender offer, if commenced, would be filed with the Securities and Exchange Commission (the “SEC”) and distributed to Hyperscale Data’s stockholders.
The principal business of Ault & Company is investing in securities. Ault & Company, together with its affiliates (including, Milton C. Ault III, Hyperscale Data’s Executive Chairman, William Horne, Hyperscale Data’s Chief Executive Officer and Vice Chairman and Henry Nisser, Hyperscale Data’s President and General Counsel), beneficially own approximately
This press release is for informational purposes only and shall not constitute an offer to buy or sell Common Stock or any other securities.
Ault & Company Investor Contact
ir@aultandcompany.com
FAQ
Why did Ault & Company abandon its tender offer for Hyperscale Data (GPUS) shares?
What is the new investment structure between Ault & Company and Hyperscale Data (GPUS)?
What percentage of Hyperscale Data (GPUS) does Ault & Company currently own?
Will Ault & Company consider another tender offer for Hyperscale Data (GPUS) shares in the future?
