Ault Alliance, Inc. (NYSE American: AULT), a manufacturer of electronic components, held its 2024 Annual Meeting of Stockholders on Thursday, where several key proposals were approved, and six directors were appointed to the board.
The meeting, which took place on June 28, 2024, saw shareholders cast their votes on a range of issues, including the approval of accounting firm Marcum LLP for the fiscal year ending December 31, 2024, and the ratification of various financial instruments and corporate actions.
Stockholders approved the election of all six director nominees, with Milton C. Ault, III, William B. Horne, Henry C. Nisser, Robert O. Smith, Jeffrey A. Bentz, and Mordechai Rosenberg appointed to serve until the next annual meeting. The ratification of Marcum LLP as the company's independent auditor was passed with a significant majority.
Other proposals that received shareholder approval included the exercise of warrants to purchase the company's common stock issued in October 2023, and the conversion of Series C Convertible Preferred Stock into common stock and warrants, extending the total purchase price up to $75,000,000, as per an amendment to the Securities Purchase Agreement from November 2023.
Moreover, shareholders voted in favor of an amendment to the company's Certificate of Incorporation to enable a reverse stock split of the common stock by a ratio of not less than one-for-two and not more than one-for-thirty-five at any time prior to June 27, 2025, with the exact ratio to be determined by the board of directors.
However, the proposal to approve the Ault Alliance, Inc. 2024 Stock Incentive Plan was rejected by the stockholders.
The meeting outcomes highlight the company's ongoing efforts to align its financial and corporate governance strategies with shareholder interests. The approved measures are expected to provide the company with additional financial flexibility and to support its operational and strategic initiatives.
This news is based on the information provided in a press release statement and reflects the company's SEC filing on the same day.
In other recent news, Ault Alliance, a diversified holding company, has been making significant strides in its operations. Reporting a sharp rise in its Q1 2024 revenue, the company announced a 55% increase, reaching $44.9 million, marking a substantial improvement from the same quarter of the previous year.
Ault Alliance also reported the successful mining of approximately 89 Bitcoin in April by its subsidiary, Sentinum, Inc., split between its Michigan data center and its partnership with Core Scientific, Inc.
In addition to these developments, Ault Alliance has finalized the distribution of TurnOnGreen, Inc. securities to its shareholders, a move completed in April. This involved 140 million shares of TurnOnGreen common stock, representing about 76% of TurnOnGreen's outstanding shares.
Furthermore, Ault Alliance is planning a special preferred dividend tied to its AI data center and Bitcoin mining operations. The company aims to issue a new class of preferred stock to common and Series C preferred stockholders, distributing a percentage of profits from its subsidiary, Sentinum, Inc. The exact criteria and regulatory approvals for the dividend are still pending.
These recent developments are based on data from various press release statements from Ault Alliance and insights from InvestingPro.
InvestingPro Insights
As Ault Alliance, Inc. navigates through its strategic initiatives and corporate governance, current financial metrics provide a glimpse into the company's market standing. With a market capitalization of $10.37 million and a striking revenue growth of 51.58% over the last twelve months as of Q1 2024, Ault Alliance shows signs of aggressive expansion. Still, this growth comes with significant financial challenges, as indicated by an operating income margin of -35.26% and a return on assets at -47.78% for the same period.
InvestingPro Tips suggest caution due to the company's significant debt burden and challenges in covering interest payments, which is consistent with the high price volatility seen in Ault Alliance's stock. The stock has experienced a substantial decline over the last year, with the price falling 99.79% from its 52-week high.
Moreover, the company's stock is trading at a low Price / Book multiple of 0.18, potentially indicating undervaluation in the market. For those considering an investment, these aspects should be weighed alongside the company's growth prospects.
For a deeper analysis, there are additional InvestingPro Tips available that could offer further insights into Ault Alliance's financial health and market position. Interested investors can use the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing access to these valuable investment tools and more.
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