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In a recent Special Meeting of Stockholders, Hyperscale Data, Inc., a company specializing in electronic components with annual revenue of $139.43 million, obtained approval from its shareholders to convert its Series G Preferred Stock into Class A Common Stock and warrants. This move, as stipulated by the NYSE American Rule 713(a) and (b), involves a total purchase price of up to $25 million under a Securities Purchase Agreement dated December 21, 2024. According to InvestingPro analysis, the company currently operates with a significant debt burden, with a concerning current ratio of 0.23.
The meeting, which took place on Thursday, saw a majority of votes cast in favor of the conversion, with 138,996 for, 27,268 against, and 5,279 abstentions. Notably, there were no broker non-votes, indicating a strong shareholder presence and interest in the decision-making process. The stock, currently trading at $2.62, appears undervalued according to InvestingPro Fair Value metrics, though investors should note the stock’s significant volatility, having declined over 80% in the past year.
The conversion is part of the company’s strategic financial maneuvers as outlined in the proxy statement filed on February 24, 2025. This action will potentially adjust the company’s capital structure by converting the preferred shares into 25,000 shares of Class A Common Stock alongside warrants for additional purchases. With total debt of $127.62 million and rapidly diminishing cash reserves, this restructuring comes at a crucial time. Unlock 12 additional key insights about Hyperscale Data’s financial health with InvestingPro.
Hyperscale Data, Inc., previously known as Ault Alliance, Inc., BitNile Holdings, Inc., and Ault Global Holdings, Inc., has undergone several name changes, with the latest being on January 3, 2023. The company’s stock, including Class A Common Stock (NYSE American: GPUS) and 13.00% Series D Cumulative Redeemable Perpetual Preferred Stock (NYSE American: GPUS PD), is traded on the NYSE American.
The company, headquartered in Las Vegas, Nevada, and incorporated in Delaware, is recognized under the SIC code 3679, which pertains to the manufacturing of electronic components not elsewhere classified.
The information provided in this article is based on the statements from the SEC filing by Hyperscale Data, Inc. This decision by the shareholders marks a significant step in the company’s financial strategy, reflecting their confidence in the company’s future prospects and governance.
In other recent news, Hyperscale Data, Inc. has entered into an amended and restated forbearance agreement with an institutional investor, extending the forbearance period through May 15, 2025. This agreement involves issuing a convertible promissory note amounting to $3.5 million, which carries an 18% annual interest rate and is convertible into common stock pending approval from NYSE and stockholders. Additionally, Hyperscale Data has amended the terms of its Series G Convertible Preferred Stock, adjusting the "Voting Floor Price" from $5.38 to $6.244, effective immediately. This amendment follows a previous agreement with Ault & Company, Inc., allowing for the sale of up to 25,000 shares of Series G convertible preferred stock for up to $25 million. In a related transaction, the company sold 365 shares of Series G convertible preferred stock and warrants to Ault & Company, raising $365,000 as part of a larger deal totaling $860,000 to date. This sale is part of an ongoing agreement that permits Ault & Company to purchase up to $25 million of Series G Convertible Preferred Stock and Warrants. These financial activities, including the equity sale to Ault & Company, reflect Hyperscale Data’s strategic financial maneuvers and adjustments to its governance structures.
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