Hyperscale Data, Inc., a Delaware-based electronic components manufacturer, has entered into a material definitive agreement with an affiliated company, Ault & Company, Inc., involving the sale of equity securities, according to a filing with the Securities and Exchange Commission (SEC) today.
The transaction, which took place on Monday, involved the sale of 495 shares of Series G convertible preferred stock and corresponding warrants to purchase 83,643 shares of Hyperscale Data's common stock.
The purchase price for this transaction was set at $495,000. This marks the initial purchase under an agreement that could see Ault & Company invest up to $25 million in Hyperscale Data through the acquisition of Series G Convertible Preferred Stock and Series G Warrants.
Ault & Company is an affiliate of Hyperscale Data, and the terms of the agreement were previously detailed in SEC filings on December 23, 2024, with amendments on January 3, 2025, and today. The securities were sold to Ault & Company in reliance upon an exemption from registration under Section 4(a)(2) of the Securities Act of 1933.
The Series G Convertible Preferred Stock and Series G Warrants provide Ault & Company with the potential to increase their stake in Hyperscale Data. The preferred stock is convertible, meaning it can be converted into common stock under certain conditions, while the warrants give the holder the right to purchase additional shares at a predetermined price.
Hyperscale Data, which trades on the NYSE American under the ticker GPUS, has seen its share structure evolve with the recent transactions. The stock has shown significant volatility with a beta of 3.38, and despite a recent 11.67% gain over the past week, it remains well below its 52-week high of $76.04.
The company also lists its 13.00% Series D Cumulative Redeemable Perpetual Preferred Stock on the same exchange under the ticker GPUS PRD. InvestingPro analysis suggests the stock may be currently undervalued based on their proprietary Fair Value model.
The company's business address is in Las Vegas, Nevada, and it operates under the SIC code 3679 for Electronic Components, NEC. With a concerning current ratio of 0.23 and an overall Financial Health Score rated as WEAK by InvestingPro, the company faces significant financial challenges. Hyperscale Data has undergone several name changes in the past, previously known as Ault Alliance, Inc., BitNile Holdings, Inc., and Ault Global Holdings, Inc., with the most recent change occurring on January 3, 2023.
This news is based on a press release statement and provides investors with the latest developments in Hyperscale Data's financial activities. The company’s executive offices are located at 11411 Southern Highlands Parkway, Suite 240, Las Vegas, NV 89141.
In other recent news, Hyperscale Data, Inc. has made significant financial strides by raising millions through the sale of Series C convertible preferred stock and associated warrants to its affiliate, Ault & Company, Inc. The company has secured a total of $48.1 million, with the potential to reach up to $75 million.
Furthermore, Hyperscale Data has entered into a forbearance agreement concerning a $5.39 million convertible promissory note, managing a substantial debt of $127.62 million.
In other moves, Hyperscale Data has executed a reverse stock split, consolidating every thirty-five shares into one. The company also sold a real estate property in St. Petersburg, Florida, for $13.2 million.
In addition to these recent developments, Hyperscale Data is focusing on enhancing its data center operations, specifically its artificial intelligence (AI) data center in Michigan. The company plans to increase the facility's capacity from approximately 30 megawatts to 300 megawatts, contingent on necessary regulatory approvals and financing. Lastly, Hyperscale Data's shareholders have approved the conversion of a 10% OID Convertible Promissory Note into common stock.
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