Hyperscale Data Secures Up to $25 Million in Financing Deal

Hyperscale Data Announces Major Financing Agreement

LAS VEGAS — Hyperscale Data, Inc. (NYSE: GPUS), a diversified holding company, has made headlines by entering into a significant Securities Purchase Agreement providing for up to $25 million in financing from Ault & Company, Inc., a related party. This agreement not only reflects Hyperscale Data's commitment to growth but also sets the stage for exciting developments in their operations.

Details of the Financing Agreement

The financing will allow Hyperscale Data to issue and sell up to $25 million worth of Series G Convertible Preferred Stock. These Preferred Shares will have a stated value of $1,000 each and can be converted into common stock, giving investors a chance to participate in the future growth of the company.

Conversion Price Structure

Each Preferred Share comes with a conversion price that will be attractive to investors. It is structured with a floor price of $0.10, not subject to adjustments for stock splits or dividends, and has a maximum conversion price of either $6.74 or a 5% premium over the previous day's closing price. This pricing strategy ensures that investors have a secure return.

Use of Proceeds

The proceeds from this financing will be allocated towards expanding the MI data center operations, which is essential for supporting infrastructure upgrades to meet the increasing demands of high-performance computing services, particularly those related to artificial intelligence solutions. In addition to this, funds will be utilized to repay outstanding debts and for general working capital purposes.

Warrants and Additional Benefits

Ault & Company will receive warrants to purchase up to approximately 4.25 million shares of common stock assuming full issuance of the Preferred Shares. These warrants will be exercisable for five years at an initial price of $5.92 per share. This incentive could potentially lead to substantial returns for Ault & Company if Hyperscale Data’s stock price rises.

Management's Perspective

Milton "Todd" Ault III, Executive Chairman of Hyperscale Data, expressed his strong belief in the company's future following this financing agreement. He noted that the willingness of Ault & Company to invest yet another $25 million beyond prior investments clearly signifies confidence in the undervaluation of the company by the market. He emphasized that this transaction is a serious indicator of optimism for Hyperscale Data's future.

Future Outlook and Additional Details

While the agreement provides for several closings through December, the financing process is subject to various customary closing conditions and approval processes. This means that while the deal is significant, its execution is contingent upon satisfying regulatory and stockholder requirements. Additional information concerning the issuance of the securities and the financing terms will be detailed in an upcoming Current Report.

About Hyperscale Data, Inc.

Founded to unite various technologies and businesses under one roof, Hyperscale Data has shifted its focus primarily toward owning and operating data centers that deliver high-performance computing services. With a portfolio that includes mining digital assets and offering colocation services, the company is also a key player in providing critical products across several industries, including artificial intelligence, defense, and medical sectors. Their commitment to growth and innovation is evident in their expansion strategies and partnerships.

Frequently Asked Questions

What does the financing agreement entail for Hyperscale Data?

The financing agreement provides Hyperscale Data with up to $25 million to support its operations, primarily focused on expanding its data center.

How will the funds from the financing be used?

Funds will be allocated to expanding data center operations, infrastructure upgrades, debt repayment, and general working capital.

What is the significance of the Preferred Shares?

The Preferred Shares offer investors an opportunity for conversion into common stock at set prices, providing potential returns on investment.

Who is Ault & Company, Inc.?

Ault & Company is a related party that is providing the financing to Hyperscale Data as part of the securities purchase agreement.

What industries does Hyperscale Data operate in?

Hyperscale Data operates primarily within high-performance computing, artificial intelligence, and various other sectors, including medical and defense.

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