Summary of Ault Alliance Closes on $8.8 Million Additional Senior Secured Debt Financing with Existing Lenders:
• Ault Alliance, Inc., a diversified holding company, has secured an additional $8.8 million in senior debt financing from a group of existing institutional lenders.
• This loan will be used primarily to augment working capital and facilitate the general operational needs of the Company.
• The loans mature in May 2024 and are secured against select assets of the Company and certain of its subsidiaries.
Ault Alliance Secures Additional Senior Debt Financing
Ault Alliance, Inc., a diversified holding company, is pleased to announce that it has successfully secured an additional $8.8 million in senior debt financing (the “Loans”) from a group of existing institutional lenders (the “Lenders”). The Loans mature on May 7, 2024, accumulate interest at a favorable annual rate of 8.5%, and are secured against select assets of the Company and certain of its subsidiaries. Loan guarantees have been furnished by Ault Lending, LLC, a subsidiary of the Company; Ault & Company, Inc., an affiliate of the Company; as well as Milton C. Ault III, the Company’s Executive Chairman and Chief Executive Officer of Ault &Company,Inc .
Benefits for the Company
The proceeds from these Loans will primarily be deployed for augmenting working capital and facilitating general operational needs for the Company. The new Loans were issued with an original issue discount of $1.3 million which will help reduce costs associated with taking out such loans over time for the company. In addition to this loan providing needed working capital to further strengthen their financial position , they have also repaid all other senior secured debts previously owed by them .
Relationship between Ault Alliance & Lenders
Milton “Todd” Ault III , Founder and Executive Chairman expressed his gratitude towards these lenders stating that their relationship has proven to be invaluable asset for growth and stability for Ault Alliance . Kenneth S. Cragun , Chief Financial Officer added that they are elated to maintain such solid senior lending relationship which gives them comfort for future ventures .
RecommendationsFor more information on Ault Alliance and its subsidiaries, it is recommended that stockholders , investors or any other interested parties read public filings available under Investor Relations section at www .AULT .com or www .sec .gov
In conclusion , A ult Alliance has acquired additional funds which will be used to augment working capital as well as repay all other senior secur ed debts previously owed by it . This loan amo unt is given with favorable terms exhibiting supportiveness from existing l enders who wish to fuel future growth endeavors o f t he co mpany .