Ault & Company Withdraws Tender Offer for Hyperscale Data Stock

Ault & Company Decides to Abandon Tender Offer for Shares

Ault & Company, Inc. has made the significant decision to withdraw its previously planned cash tender offer aimed at acquiring up to 111,000 shares of Class A Common Stock from Hyperscale Data, Inc. This move, which was to purchase shares at a price between $7.50 and $10.00 each, is a strategic pivot as Ault & Company turns its focus to different investment opportunities.

Strategic Focus on Preferred Shares

Instead of pursuing the tender offer, Ault & Company has opted to engage in a recently executed securities purchase agreement with Hyperscale Data. Under this agreement, Ault & Company holds the opportunity to buy up to $25 million worth of shares in Hyperscale Data’s Series G Convertible Preferred Stock. This decision underscores Ault & Company's commitment to aligning with Hyperscale Data's long-term growth vision and enhancing shareholder value.

Insights on Stock Valuation

Ault & Company maintains its belief that the current valuation of Hyperscale Data’s Common Stock does not reflect its actual long-term intrinsic value. By investing in the Preferred Shares, Ault & Company aims to solidify its support for Hyperscale Data and its current shareholders.

Potential Future Opportunities

While the immediate tender offer has been abandoned, Ault & Company has hinted at the possibility of revisiting this option in the future. However, any new tender offer would depend on the completion of the Preferred Shares purchase, the evaluation of current market conditions, and must be approved by Ault & Company’s board. These evaluations will also require compliance with various regulatory standards.

Ownership and Influence

Ault & Company, along with its affiliates, currently holds approximately 91.7% of the outstanding shares of Hyperscale Data’s Common Stock. This ownership is primarily facilitated through holdings in Series C Convertible Preferred Stock and warrants granted to purchase Common Stock. This level of ownership underscores the significant influence Ault & Company has within Hyperscale Data.

Future Communications and Transparency

Any prospective plans regarding future tender offers will be disclosed to stockholders and the Securities and Exchange Commission (SEC) when appropriate. Ault & Company is committed to maintaining transparency with its shareholders as it navigates investment decisions that align with its strategic objectives.

Contact Information

Investors seeking more information can reach out to Ault & Company via their investor contact email at ir@aultandcompany.com.

Frequently Asked Questions

What prompted Ault & Company to abandon the tender offer for Hyperscale Data?

Ault & Company decided to focus on other investment opportunities, specifically purchasing Preferred Shares as outlined in a securities purchase agreement.

How does Ault & Company view the current stock price of Hyperscale Data?

Ault & Company believes that the stock price does not reflect Hyperscale Data's true long-term intrinsic value, influencing their investment strategy.

What percentage of Hyperscale Data shares does Ault & Company own?

Ault & Company, together with its affiliates, owns approximately 91.7% of Hyperscale Data’s outstanding shares.

What future actions might be taken regarding the tender offer?

Ault & Company might revisit a tender offer after completing the purchase of the Preferred Shares, subject to board approval and market conditions.

How can investors contact Ault & Company for more information?

Investors can reach out through the email ir@aultandcompany.com for inquiries and updates.

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