In a groundbreaking move, Hyperscale Data, Inc. (AMEX: GPUS) has forged an agreement with Ault & Company, Inc., marking a significant milestone in the realm of high-performance computing services. The agreement entails a financing package of up to $25 million, illustrating a strategic collaboration between the two entities.
This momentous announcement is poised to transform the landscape of data centers by fueling expansion and infrastructure enhancements at an unprecedented scale. The infusion of capital from Ault & Company, Inc. sets the stage for cutting-edge advancements in Artificial Intelligence solutions and reinforces Hyperscale Data’s position as an industry leader.
Under the Securities Purchase Agreement, Hyperscale Data will issue Series G Convertible Preferred Stock to Ault & Company, Inc., with each Preferred Share carrying a stated value of $1,000. Investors can opt to convert these shares into Common Stock at a conversion price set at a premium above market rates. Additionally, Ault & Company, Inc. will receive warrants to acquire approximately 4.25 million shares of Common Stock at a specified price point.
The influx of funds from this financing arrangement will be allocated towards bolstering the MI data center infrastructure to meet escalating demands in high-performance computing services. Furthermore, it will facilitate debt repayment and support general working capital requirements essential for sustained operational excellence.
Milton “Todd” Ault III, Executive Chairman of Hyperscale Data and Chairman & CEO of A&C expressed unwavering confidence in this transformative venture. He emphasized that beyond financial figures, this collaboration underscores a steadfast belief in the company’s core assets and its trajectory towards unparalleled success.
The multi-phased approach outlined in the agreement spans through December 31, 2025, with provisions for potential extensions based on evolving market conditions and regulatory requirements. Regulatory approvals and shareholder consensus are pivotal prerequisites for finalizing this landmark transaction.
As part of its commitment to transparency and compliance, Hyperscale Data intends to file detailed disclosures with the United States Securities and Exchange Commission (SEC), shedding light on intricate aspects related to securities issuance and financing terms.
In conclusion, this strategic alliance heralds a new era for Hyperscale Data as it pivots towards consolidating its position as a premier data center operator catering to diverse industries’ evolving needs. The convergence of cutting-edge technology solutions with robust financial backing epitomizes an unwavering dedication to innovation and growth within the dynamic digital landscape.
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