In an exciting move that sets the stage for groundbreaking advancements, Hyperscale Data has recently disclosed a momentous agreement with Ault & Company for a financing arrangement of up to $25 million. This strategic partnership marks a significant milestone in the trajectory of Hyperscale Data, a dynamic holding company based in Las Vegas, Nevada.
The financing agreement, structured as a Securities Purchase Agreement, paves the way for Hyperscale Data to access vital capital from Ault & Company. Under this agreement, Hyperscale Data will issue and sell up to $25 million in shares of Series G Convertible Preferred Stock to A&C. Notably, these Preferred Shares hold precedence over other classes of preferred stock within the company’s portfolio, serving as a testament to the confidence placed by both parties in this mutually beneficial arrangement.
Each Preferred Share carries a designated value of $1,000.00 and offers holders the option to convert into Common Stock at a conversion price determined by market dynamics. The terms include provisions for anti-dilution measures and “full ratchet” price protection mechanisms to safeguard investor interests. Moreover, A&C will be granted warrants enabling them to purchase approximately 4.25 million shares of Common Stock at an exercise price set at $5.92 per share over a five-year period.
The infusion of funds resulting from this financing initiative is earmarked for several key purposes pivotal to Hyperscale Data’s growth trajectory. Primarily, it will fuel the expansion of their MI data center infrastructure essential for bolstering high-performance computing services that underpin Artificial Intelligence solutions. Additionally, proceeds will be allocated towards debt repayment and general working capital requirements vital for sustaining operational excellence.
Milton “Todd” Ault III, Executive Chairman of Hyperscale Data and Chairman & CEO of A&C, expressed unwavering confidence in this transformative development. He emphasized how the premium conversion price signifies market undervaluation while underscoring his enduring faith in Hyperscale Data’s diverse portfolio entities driving collective success.
With multiple closings scheduled through December 31, 2025 – subject to regulatory approvals and customary closing conditions – this collaboration between Hyperscale Data and Ault & Company heralds an era of innovation and strategic growth opportunities within the data center domain.
For stakeholders keen on delving deeper into Hyperscale Data’s evolution post-financing deal closure or exploring its array of subsidiaries and business verticals more comprehensively are encouraged to engage with their public filings accessible via hyperscaledata.com or www.sec.gov.
As we stand on the cusp of transformative change within data center ecosystems worldwide, this landmark financing arrangement between Hyperscale Data and Ault & Company signals an auspicious beginning towards shaping tomorrow’s technological landscape seamlessly fused with financial acumen and visionary leadership strategies.
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