Ault Alliance Enters Agreement with Ault & Company to Restructure $17.5M of Liabilities into Long-Term Convertible Debt
Portfolio Pulse from Benzinga Newsdesk
Ault Alliance, Inc. (NYSE:AULT) has entered into an agreement with Ault & Company, Inc. to restructure $17.5M of liabilities into long-term convertible debt. The agreement includes the issuance of a senior secured convertible promissory note and warrants to purchase AAI's common stock. The debt is secured by a first priority security interest in all the assets of AAI and its subsidiaries.
October 16, 2023 | 10:32 am
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Ault Alliance's restructuring of $17.5M of liabilities into long-term convertible debt could potentially improve the company's financial stability. However, the debt is secured by all assets of the company and its subsidiaries, which could pose a risk in case of default.
The restructuring of liabilities into long-term convertible debt could improve Ault Alliance's financial stability by reducing immediate liabilities. However, the fact that the debt is secured by all assets of the company and its subsidiaries could pose a risk in case of default, potentially leading to a loss of assets. This could have a neutral impact on the stock price in the short term, as the potential benefits of improved financial stability could be offset by the risks associated with the secured debt.
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