Hyperscale Data, Inc. (NYSE American: GPUS), a Delaware-based electronic components manufacturer, has reported the sale of its Series C convertible preferred stock and associated warrants, raising $48.1 million in a transaction with an affiliate, Ault & Company, Inc.
The agreement, originally executed on November 6, 2023, allowed for the sale of up to $75 million of Series C convertible preferred stock and corresponding Series C warrants. As of today, Ault & Company has purchased 48,100 shares of the preferred stock and warrants to buy an additional 406,288 common shares at a price of $500,000 for 500 shares of the preferred stock and associated warrants.
Hyperscale Data, previously known as Ault Alliance, Inc., BitNile Holdings, Inc., and Ault Global Holdings, Inc., has undergone several name changes, with the most recent occurring on January 3, 2023. The company's headquarters are located at 11411 Southern Highlands Parkway, Suite 240, Las Vegas, NV, with its fiscal year ending on December 31.
The sale of equity securities and the entry into a material definitive agreement have been disclosed as per regulatory requirements, reflecting Hyperscale Data's ongoing financial strategy and its relationship with its affiliate, Ault & Company. This transaction is part of the company's broader efforts to finance its operations and growth initiatives. The information in this article is based on a press release statement.
In other recent news, Hyperscale Data, Inc. has secured substantial funding through the sale of equity securities. The company has raised $47.6 million from its affiliate, Ault & Company, Inc., through the sale of Series C convertible preferred stock and corresponding warrants. Additionally, Hyperscale Data has entered into a forbearance agreement regarding a $5.39 million convertible promissory note, indicating management of a considerable debt of $127.62 million.
In recent developments, Hyperscale Data also announced a reverse stock split, consolidating every thirty-five shares into one. Moreover, the company has been expanding its equity, with the aggregate investment from these transactions reaching $46.53 million, potentially reaching up to $75 million.
Hyperscale Data has also sold a real estate property in St. Petersburg, Florida for $13.2 million. The company is focusing on enhancing its data center operations, particularly its artificial intelligence (AI) data center in Michigan, with plans to increase the facility's capacity from approximately 30 megawatts to 300 megawatts, contingent on regulatory approvals and financing.
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