Ault Alliance plans to swap common shares for 13% preferreds

By Mary-Katherine Stinson

Lexington, Ky., Dec. 13 – Ault Alliance, Inc. emphasized plans to exchange up to 60 million shares of its common stock for up to $15 million total liquidation preference of its 13% series D cumulative redeemable perpetual preferred stock, according to a press release.

The company will provide details, including timing, terms and conditions of the offer, via a press release on Dec. 21.

The $0.25 liquidation preference per common share equivalent of the series D stock represents a 201% increase over the closing price of $0.083 on Dec. 12 on the NYSE.

The series D stock annual dividend provides an additional annual recurring value of $0.0325 per common share, or 39% of the closing price.

Based on these figures, the stated value of the series D stock and the first year’s required dividend payments, stockholders who participate in the offer could realize a premium of approximately 240%, of which 39% is from cash dividends, from the closing price, according to the press release.

The offer is subject to regulatory approval and other customary closing conditions.

It is anticipated that the offer will be SEC-exempt.

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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