In a recent development, Hyperscale Data, Inc., an electronic components manufacturer, has entered into a material definitive agreement with Ault & Company, Inc. On Monday, the company sold a portion of its Series G convertible preferred stock along with associated warrants to Ault & Company, generating $365,000 from the sale of 365 shares and warrants to purchase 61,676 shares of common stock.
This transaction is part of a larger deal that has taken place over several closings, with Hyperscale Data raising a total of $860,000 to date. As per the agreement, which was initially signed on December 21, 2024, Ault & Company has the option to purchase up to $25 million of the Series G Convertible Preferred Stock and Series G Warrants.
Ault & Company is affiliated with Hyperscale Data, and the sale of these equity securities has been executed under an exemption from the registration requirements, according to Section 4(a)(2) of the Securities Act of 1933. This suggests that the securities were sold in a private placement to a sophisticated investor.
The details of the Series G Convertible Preferred Stock and the Series G Warrants were outlined in the Form 8-K filed with the Securities and Exchange Commission on December 23, 2024, with amendments on January 3 and January 6, 2025. The preferred stock is convertible, and the warrants are exercisable under certain conditions specified in the agreement.
The company's securities, including its common stock and 13.00% Series D Cumulative Redeemable Perpetual Preferred Stock, are listed on the NYSE American under the symbols GPUS and GPUS PRD, respectively. The stock has experienced significant volatility, with InvestingPro data showing a 92% decline over the past year, though recent trading suggests the stock may be undervalued based on InvestingPro's Fair Value analysis.
This financial move comes as Hyperscale Data, Inc., which is incorporated in Delaware and headquartered in Las Vegas, NV, continues to navigate the electronic components market. The company, previously known as Ault Alliance, Inc., BitNile Holdings, Inc., and Ault Global Holdings, Inc., has undergone several name changes, with the most recent being on January 3, 2023.
In other recent news, Hyperscale Data, Inc. has made significant strides in its financial strategy. The company has completed a series of equity sales to its affiliate, Ault & Company, Inc., raising a substantial amount through the sale of Series C convertible preferred stock and associated warrants. The total investment from these transactions has reached up to $48.1 million, with the potential for it to reach up to $75 million.
These recent developments are part of Hyperscale Data's broader efforts to manage its capital structure and ensure liquidity. The company has also executed a reverse stock split, consolidating every thirty-five shares into one. Additionally, it sold a real estate property in St. Petersburg, Florida, for $13.2 million.
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