Ault Global (NYSEAMERICAN:DPW) Announces Entry into Material Definitive Agreements

Ault Global, operating as Hyperscale Data, Inc., reported a significant transaction in a recent 8-K filing with the Securities and Exchange Commission. On December 10, 2024, the company finalized an agreement with Ault & Company, Inc., resulting in the sale of 50 shares of Series C Convertible Preferred Stock and accompanying Series C Warrants to purchase 422 shares of common stock. This transaction totaled $570,000, contributing to a cumulative investment by the Purchaser of $47.6 million by December 11, 2024. The agreement allows for potential future purchases of up to $75 million in Series C Convertible Preferred Stock and Warrants.

The Purchaser, an affiliate of the company, had previously engaged in a note purchase agreement with an institutional investor, leading to the issuance of a $5,390,000 10% OID Convertible Promissory Note, known as the Old Note. In response to the maturity of the Old Note on October 19, 2024, Hyperscale Data, Inc. and the Investor entered into a Forbearance Agreement on December 10, 2024. This agreement involves the issuance of a Forbearance Note amounting to $853,067.93, including a forbearance extension fee, a true-up amount, and forbearance interest. The Forbearance Note, subject to approval by the NYSE American LLC and Stockholder Approval, is convertible into Common Stock at a conversion price of $5.47, accruing interest at 18% per annum and maturing on February 15, 2025.

The Forbearance Note terms also encompass standard events of default, including payment failures, covenant breaches, bankruptcy events, and common stock suspension or delisting from trading on an eligible exchange. Additional specifics of the Forbearance Note and Agreement are available in the Form of Forbearance Note and Forbearance Agreement, attached as exhibits to the filing.

The disclosure made under Item 1.01 of the Current Report, encompassing the Series C Preferred transaction and the Forbearance Agreement and Note, is applicable to the disclosures required under Items 2.03 and 3.02. These agreements involved the sale of equity securities and the creation of financial obligations by Ault Global as Hyperscale Data, Inc.

This report is hereby signed on behalf of Hyperscale Data, Inc. by President and General Counsel, Henry Nisser, on December 11, 2024.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Ault Global’s 8K filing here.

About Ault Global

Ault Global Holdings, Inc engages in the design, development, manufacture, and sale of customized and flexible power system solutions for the medical, military, telecom, and industrial markets. It operates through the following segments: DPC, DPL, Enertec, Digital Farms, and I.AM. The DPC segment includes Microphase, Coolisys, Power-Plus, and DP Lending.