LAS VEGAS - Ault Alliance, Inc. (NYSE American: AULT), a diversified holding company, announced today the termination of its at-the-market issuance sales agreement (ATM) and will not engage in ATM sales of its common stock for the remainder of 2024 and beyond. Instead, the company is considering the issuance of non-convertible debt to fund its operations until its revenues are sufficient to cover costs.
In a strategic move to simplify its organizational structure, Ault Alliance is restructuring the ownership of its operating businesses. This will result in two primary reporting segments: Sentinum, Inc., which oversees data center and bitcoin mining operations, and Ault Capital Group, Inc., which encompasses a variety of entities including Circle 8 Crane (NYSE:CR) Services, LLC, Giga-tronics Incorporated, Ault Lending, LLC, and other legacy entities.
Milton "Todd" Ault III, the company's Founder and Executive Chairman, emphasized the significance of the shift in financing strategy. He stated that the company, with an asset base nearing $400 million, is focused on aligning its public valuation with the actual value of its underlying assets. Ault expressed confidence that the restructuring and financial strategy would benefit stockholders, enhance market position, and lay a foundation for future growth.
He also mentioned the company's reliance on funding from Ault & Company, Inc., through the Series C preferred stock investment, as part of its strategic financing methods. Ault Alliance is intensifying its focus on Sentinum and Ault Capital to drive their expansion.
Ault Alliance, Inc. is known for acquiring undervalued businesses and disruptive technologies with a global impact. Its portfolio includes operations in data centers, Bitcoin mining, artificial intelligence ecosystems, and a range of industries from defense/aerospace to medical/biopharma and textiles. The company also provides credit through a licensed lending subsidiary.
This news is based on a press release statement and the company advises interested parties to consult its public filings and press releases for more information.
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