Ault Alliance, a diversified holding company, secured an additional $8.8 million in senior debt financing from a group of its existing institutional lenders. According to an 8K filed with the SEC, the lenders include JGB Capital, JGB Partners and JGB (Cayman) Buckeye.

Ault Alliance previously borrowed $18.9 million from the lenders in November 2022. When combined with the new loans, the company’s financing has an aggregate outstanding amount of $24.3 million. The loans mature on May 7, 2024, accumulate interest at an annual rate of 8.5% and are secured against select assets of Ault Alliance and certain of its subsidiaries.

“Our relationship with the lenders has proven to be a significant asset to the growth and stability of Ault Alliance,” Milton Ault III, founder and executive chairman of Ault Alliance, said. “The lenders have consistently exhibited supportiveness and a willingness to fuel our future growth endeavors. This favorable borrowing rate is another testament to our relationship.”

“We have paid off all other senior secured debts at the company, and the new loans announced today provide needed working capital to further strengthen our financial position,” Kenneth S. Cragun, CFO of Ault Alliance, said. “We are elated to maintain such a solid senior lending relationship and feel incredibly comfortable with the lenders as our partners for future ventures.”

Ault Lending, a subsidiary of Ault Alliance, and Ault & Company, an affiliate of Ault Alliance, furnished the loan guarantees along with Ault III.

Ault Alliance will primarily deploy the proceeds from the loans to augment working capital and facilitate the general operational needs of the company. The new loans were issued with an original issue discount of $1.3 million.