Ault Alliance, Inc. (NYSE American: AULT), a diversified holding
company (“Ault Alliance,” or the “Company”), today
announced that it currently anticipates utilizing the stock
repurchase program (the “Repurchase Program”) that was
previously authorized by its Board of Directors (the
“Board”) in December 2021. The Repurchase Program would
start no earlier than two business days after the filing of the
Company’s Form 10-Q for the quarter ending March 31, 2024.
Under the Repurchase Program, the Board authorized the Company
to repurchase up to $50 million of common stock, which repurchases
may be made on a discretionary basis from time to time through a
variety of methods, including open market repurchases. The Company
intends to enact a trading plan (the “Rule 10b5-1 Plan”) for
the repurchases in compliance with the Rule 10b5-1 of the
Securities Exchange Act of 1934, as amended (the “Exchange
Act”), the rules of the United States Securities and Exchange
Commission and other applicable federal and state rules and
regulations. The Rule 10b5-1 Plan will allow the Company to execute
trades during periods when it would otherwise not be permitted to
do so because it may be in possession of material non-public
information, because of insider trading laws or self-imposed
trading blackout periods. Under the Rule 10b5-1 Plan, the executing
broker would have the authority, under the prices, terms and
limitations set forth in the Rule 10b5-1 Plan, including compliance
with Rule 10b-18 of the Exchange Act (“Rule 10b-18”), to
repurchase shares on the Company’s behalf. In accordance with Rule
10b-18, the Repurchase Program is not intended to constitute a
going-private transaction.
The timing and number of shares repurchased, if any, will depend
on a variety of factors, including further Board approval,
available financing as well as the Company’s cash position, the
price and trading volume of the Company’s, general business and
market conditions and restrictions on stock repurchases in existing
loan agreements, among other items, in each case at the time when
the Company may initiate share repurchases pursuant to the Rule
10b5-1 Plan. The Company intends to finance the repurchases from
several sources, including excess cash flow from operations, as and
when available, and proceeds from future borrowing arrangements or
financings. The repurchase program is set to expire on December 15,
2024, but may be modified, suspended, or discontinued at any time
prior thereto at the Company’s discretion. Any shares repurchased
under the Repurchase Program will be returned to treasury and will
reduce the public float of common stock. The potential institution
of the Repurchase Program is, in the view of the Company’s
management, another step towards enhancing stockholder value and
would follow the Company’s previously announced return to treasury
of 101,362 shares of the Company’s 13% Series D cumulative
redeemable perpetual preferred stock and 679,969 shares of common
stock, which were acquired by the Company’s wholly owned
subsidiary, Ault Lending, LLC at the end of December 2023 upon
liquidation of a related party hedge fund.
Milton “Todd” Ault III, Founder and Executive Chairman of Ault
Alliance, commented on the Repurchase Program, saying, “While the
Company has explored methods previously to buy back common stock
from stockholders, including the exchange offers announced in March
2023, and November 2023, the Company ultimately determined that the
most efficient way to execute a buyback program was to work through
its existing and approved share repurchase program of up to $50
million worth of common stock. Overall, I believe that the
Repurchase Program is a prudent use of capital and is attractive to
management as it believes that the Company’s common stock is
severely undervalued.”
For more information on Ault Alliance and its subsidiaries, Ault
Alliance recommends that stockholders, investors, and any other
interested parties read Ault Alliance’s public filings and press
releases available under the Investor Relations section at
www.Ault.com or at www.sec.gov.
About Ault Alliance, Inc.
Ault Alliance, Inc. is a diversified holding company pursuing
growth by acquiring undervalued businesses and disruptive
technologies with a global impact. Through its wholly and
majority-owned subsidiaries and strategic investments, Ault
Alliance owns and operates a data center at which it mines Bitcoin
and offers colocation and hosting services for the emerging
artificial intelligence ecosystems and other industries, and
provides mission-critical products that support a diverse range of
industries, including a metaverse platform, oil exploration, crane
services, defense/aerospace, industrial, automotive,
medical/biopharma, consumer electronics, hotel operations and
textiles. In addition, Ault Alliance extends credit to select
entrepreneurial businesses through a licensed lending subsidiary.
Ault Alliance’s headquarters are located at 11411 Southern
Highlands Parkway, Suite 240, Las Vegas, NV 89141;
www.Ault.com.
Forward-Looking Statements
This press release contains “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. These forward-looking statements generally include
statements that are predictive in nature and depend upon or refer
to future events or conditions, and include words such as
“believes,” “plans,” “anticipates,” “projects,” “estimates,”
“expects,” “intends,” “strategy,” “future,” “opportunity,” “may,”
“will,” “should,” “could,” “potential,” or similar expressions.
Statements that are not historical facts are forward-looking
statements. Forward-looking statements are based on current beliefs
and assumptions that are subject to risks and uncertainties.
Forward-looking statements speak only as of the date they are
made, and the Company undertakes no obligation to update any of
them publicly in light of new information or future events. Actual
results could differ materially from those contained in any
forward-looking statement as a result of various factors. More
information, including potential risk factors, that could affect
the Company’s business and financial results are included in the
Company’s filings with the U.S. Securities and Exchange Commission,
including, but not limited to, the Company’s Forms 10-K, 10-Q and
8- K. All filings are available at www.sec.gov and on the Company’s
website at www.Ault.com.
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Ault Alliance Investor Contact: IR@Ault.com or
1-888-753-2235
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