Hyperscale Data, a diversified holding company, entered into a securities purchase agreement providing for up to $100 million of financing from Ault, a related party. Pursuant to the agreement, Hyperscale Data has agreed to issue and sell to Ault up to $100 million in shares of series H convertible preferred stock. The preferred shares will be senior to all other classes of preferred stock the company has outstanding except with respect to the series C convertible preferred stock and the series G convertible preferred stock, with each of which it ranks in parity, as well as senior to the company’s class A common stock and class B common stock.
The proceeds from the financing will be used for expansion of the MI data center to support infrastructure upgrades necessary to support the growing demands of computing services powering artificial intelligence solutions, repayment of outstanding indebtedness and general working capital purposes.
“The conversion price of the preferred shares is higher than the current market price. That A&C is willing to invest an additional up to $100 million, beyond the approximately $51 million that A&C has already invested in the company in shares of two virtually identical series of preferred stock, except that no warrants will be issued in connection with the financing, on those terms should be a clear indicator of our belief that the market has been undervaluing the company, which I’ve been highlighting for years,” Milton “Todd” Ault III, executive chairman of Hyperscale Data and chairman and CEO of Ault. “This transaction is more than a number—it’s a declaration of my steadfast confidence in our data centers, the crane company, the lending firm and the exceptional portfolio companies we’ve nurtured over the past seven years. Each is a vital component of our collective success.”
