LAS VEGAS - Ault Alliance, Inc. (NYSE American: AULT), a diversified holding company, has announced the final distribution details for securities of TurnOnGreen, Inc. (OTC: IMHC). The company's stockholders are set to receive approximately 0.71 shares of TurnOnGreen common stock and warrants for each share of Ault Alliance common stock held on the record date of April 15, 2024.
The distribution follows two previous allocations, with the initial and second distributions totaling 115,091,655 TurnOnGreen securities. The upcoming final distribution will dispense the remaining 24,908,345 securities to shareholders, scheduled for payment on April 29, 2024, subject to adjustment.
Ault Alliance's stockholders will not receive fractional shares. Instead, fractional interests will be aggregated and sold by the distribution agent. Shareholders will then receive a cash payment proportional to their share of the net proceeds from these sales, after customary brokerage commissions and other expenses, without interest and subject to applicable withholding taxes.
The market value of the 0.71 shares of TurnOnGreen common stock and warrants, based on Ault Alliance's closing stock price of $0.3669 as of March 21, 2024, is estimated to yield a dividend of approximately $0.019 per share of Ault Alliance common stock.
Milton C. Ault, Executive Chairman of Ault Alliance, expressed satisfaction with fulfilling the company's commitment regarding TurnOnGreen securities and mentioned the intention to aid TurnOnGreen in listing its shares on a national securities exchange once it meets the initial listing criteria of either Nasdaq or the NYSE American.
The Securities and Exchange Commission has declared the registration statement for the TOG Securities distributions effective. This press release is intended for informational purposes and does not constitute an offer to sell or exchange, nor a solicitation to buy Ault Alliance's common stock or any other securities.
TurnOnGreen, headquartered in Milpitas, CA, focuses on designing and manufacturing power products for various sectors, including defense, aerospace, medical, industrial, and e-mobility.
This news article is based on a press release statement
InvestingPro Insights
As Ault Alliance, Inc. (NYSE American: AULT) prepares for the final distribution of TurnOnGreen, Inc. securities to its shareholders, current and prospective investors are keenly observing the company's financial health and market performance. Ault Alliance's market capitalization stands at a modest 0.98 million USD, reflecting the size of the company in the financial markets. Despite a significant revenue growth of 75.93% in the last twelve months as of Q1 2023, the company's operating income margin was negative at -49.29%, indicating challenges in translating top-line growth into operational profitability.
Investors should note that Ault Alliance's stock has experienced considerable price volatility, with the price having fallen significantly over the last three months by -82.06%, and the stock is currently trading near its 52-week low. This level of volatility is a critical factor for risk assessment, particularly for those considering the company's securities as part of their investment portfolio.
Two InvestingPro Tips that stand out for Ault Alliance are the company's significant debt burden and the fact that its short-term obligations exceed its liquid assets. These financial pressures suggest potential liquidity risks and may affect the company's ability to meet its financial obligations in the near term.
For investors seeking a more comprehensive analysis, InvestingPro offers additional insights into Ault Alliance. There are 19 more InvestingPro Tips available that delve deeper into the company's financials, valuation, and stock performance metrics. To access these valuable tips and enhance your investment strategy, visit https://www.investing.com/pro/AULT and remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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