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Ault Alliance cancels exchange offer, minimums not met
By Mary-Katherine Stinson
Lexington, Ky., May 19 – Ault Alliance, Inc. terminated its offer to exchange up to 333,333,333 shares of its common stock for up to $50 million total liquidation preference of 10% series H cumulative redeemable perpetual preferred stock, citing logistical problems and an unmet minimum, according to a press release Friday.
The offer was subject to a condition specifying that there would be no event having occurred that was expected to adversely affect the settlement.
On May 18, the Depository Trust Co. notified Ault that after the company’s effectuated 300 for one reverse stock split, it could not accept the shares tendered in the offer on a post-reverse stock split basis. As common stock shares tendered could not be accepted and exchanged for series H preferred stock, the offer could not be settled.
In addition, the stockholders only tendered 29,623,948 shares of common stock in the offer, which was under the required 100 million share minimum.
As previously reported, the company launched the offer on March 31 with an original expiry at one minute following 11:59 p.m. ET on April 28, which was then extended to the same time on May 17 and June 2.
The series H stock received in the trade would have had the same terms as the tendered common stock.
Any tendered shares will be returned to the holders.
Georgeson (888-565-5423, https://to.aultglobal.com/) was the information agent for the offer.
The company previously stated in an earlier press release that this initiative was designed to enhance its capital structure and stockholder value by enabling the stockholders to receive a security more aligned with the underlying value of the company.
The company will now consider whether to commence a new exchange offer, according to the notice.
Ault Alliance is a Las Vegas-based diversified holding company pursuing growth by acquiring undervalued businesses and disruptive technologies with a global impact.
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