Summary by Moomoo AI
Ault Alliance, Inc. has announced the offering of a $5,390,000 10% OID Convertible Promissory Note to an institutional investor. The Note, issued under a note purchase agreement, is being sold for a purchase price of $4,900,000, reflecting an original issue discount of 10%. Interest on the Note will accrue at a rate of 15% per annum, increasing to 18% in the event of default. The Note is convertible into shares of Ault Alliance's Class A common stock at a conversion price of $0.22 per share, subject to adjustments. The conversion is contingent upon NYSE approval of the Supplemental Listing Application. If the closing bid price of the Common Stock is lower than the Conversion Price on the Adjustment Date of September 2, 2024, the Conversion Price will be reduced to 85% of the closing bid price. The Note will mature on October 19, 2024, and Ault Alliance will not receive any proceeds from the issuance of Conversion Shares upon conversion of the Note. The offering is expected to close on or about July 19, 2024, subject to customary closing conditions.
