Las Vegas, Dec. 23, 2024 (GLOBE NEWSWIRE) – In a significant development, Hyperscale Data, Inc. (AMEX: GPUS), a diversified holding company, has announced a strategic move towards securing a Securities Purchase Agreement with Ault & Company, Inc., for financing of up to $25 million.
Financing Details
Under the terms of the agreement entered into by Hyperscale Data and Ault & Company, Hyperscale Data will issue and sell shares of Series G Convertible Preferred Stock to A&C for the financing amount. These Preferred Shares will have a stated value of $1,000 per share and can be converted into Common Stock at the holder’s option. The conversion price is set at $0.10 per share or a premium based on market conditions.
Additionally, A&C will also receive warrants to purchase approximately 4.25 million shares of Common Stock at an exercise price of $5.92 per share.
Utilization of Funds
The proceeds from this financing arrangement will primarily be utilized for expanding the MI data center infrastructure to support high-performance computing services for Artificial Intelligence solutions. Furthermore, funds will also go towards debt repayment and general working capital needs.
Executive Insight
Milton “Todd” Ault III, Executive Chairman of Hyperscale Data and Chairman & CEO of A&C expressed his confidence in this transaction as a testament to their belief in the undervaluation of the company by the market. He highlighted that this investment signifies strong support for their various business entities including data centers, crane company operations, lending firm activities, and portfolio companies nurtured over the years.
Regulatory Approvals and Conditions
The completion of this transaction is subject to customary closing conditions as well as regulatory and stockholder approvals. Multiple closings are expected through December 31, 2025 unless extended by A&C as outlined in the Agreement.
Forward-Looking Statements
As with any financial transaction involving securities issuance and warrants allocation, forward-looking statements are made regarding potential outcomes. It is important to note that actual results may vary due to various factors affecting business performance.
For further details on this financing deal and related securities information from Hyperscale Data Inc., interested parties are encouraged to refer to public filings available on hyperscaledata.com or www.sec.gov websites.
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