Ault Alliance Announces Its Intention To Commence An Exchange Offer To Acquire Shares Of Its Common Stock For Up To $15M In Series D Preferred Shares
Portfolio Pulse from Benzinga Newsdesk
Ault Alliance, Inc. (NYSE:AULT) announced its intention to initiate an exchange offer to acquire up to 60,000,000 shares of its common stock for up to $15M in Series D Preferred Shares. The exchange ratio is set at one preferred share for every 100 shares of common stock, with an effective price of $0.25 per common share, a 208% increase over the last reported sales price. Shares tendered will be retired, potentially reducing the share count by approximately 81%. The Series D Preferred Stock trades under the symbol 'AULT-PD' and offers a 13.00% annual dividend. The offer is subject to regulatory approval and other conditions, with details to be provided in the Offer to Exchange documents to be filed with the SEC.

November 29, 2023 | 2:07 pm
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Ault Alliance's exchange offer could lead to a significant reduction in common stock count by up to 81%, potentially increasing the value of remaining shares. The premium offered may attract investors to participate in the exchange.
The exchange offer is likely to be viewed positively by investors due to the substantial premium offered over the current stock price, which could lead to an increase in the stock price in the short term. The reduction in common stock count could also be seen as a move to increase shareholder value, which may further support the stock price.
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