Ault Alliance Provides Further Information on Planned Exchange Offer
Summary:
Ault Alliance, Inc. has announced its planned exchange offer to accept a minimum of 20 million shares and a maximum of 60 million shares of its common stock in exchange for the issuance of up to $15 million of its 13.00% Series D Cumulative Redeemable Perpetual Preferred Stock. The exchange offer represents a premium of approximately 231% over the closing price of the common stock on December 20, 2023. The offer is subject to certain conditions including the tendering of at least 20,000,000 shares of common stock and the company’s continued listing on the NYSE American.
Introduction:
Ault Alliance, Inc. has provided additional information on its planned exchange offer. The company plans to accept a minimum of 20 million shares and a maximum of 60 million shares of its common stock in exchange for the issuance of up to $15 million of its 13.00% Series D Cumulative Redeemable Perpetual Preferred Stock. This exchange offer allows stockholders to potentially realize a premium of approximately 231% over the closing price of the common stock.
Main Points:
- The exchange offer will launch on January 8, 2024, and expire on February 6, 2024, at 5:30 PM New York City Time.
- The offer is for the exchange of common stock in 100 share increments, with the exchanged shares of common stock being retired.
- Each 100 shares of common stock exchanged will result in the issuance of one share of Series D Preferred Stock, with a liquidation preference of $25.00 per share.
- The Series D Preferred Stock will be entitled to cumulative dividends and will be publicly traded and listed on the NYSE American.
- The offer is subject to regulatory approval and other customary closing conditions.
Conclusion:
Ault Alliance, Inc. has provided further details on its planned exchange offer, which allows stockholders to exchange their common stock for Series D Preferred Stock. The exchange offer presents an opportunity for stockholders to potentially realize a significant premium over the closing price of the common stock. The offer will launch in January 2024 and is subject to certain conditions and regulatory approval.