Hyperscale Data, Inc., a key player in the electronic components sector currently facing significant financial challenges according to InvestingPro data, has advanced its financial strategy by selling additional equity securities, according to a recent 8-K filing with the SEC.
The company's overall financial health score stands at 1.32, labeled as "WEAK" by InvestingPro analysts. On Monday, the company, formerly known as Ault Alliance, Inc., BitNile Holdings, Inc., and Ault Global Holdings, Inc., entered into a securities purchase agreement with Ault & Company, Inc., an affiliated entity.
Under the terms of the agreement, which was initially executed on November 6, 2023, Hyperscale Data issued 570 shares of its Series C convertible preferred stock along with warrants to purchase 4,815 shares of common stock at a price of $570,000. To date, the company has raised $47.55 million through the sale of Series C convertible preferred stock and accompanying warrants, which allow for the purchase of 401,647 common shares in total.
Hyperscale Data's preferred stock and warrants sale is a strategic move to bolster its capital structure and fund its operations. The company's common stock, identified by the ticker symbol GPUS, and its 13.00% Series D Cumulative Redeemable Perpetual Preferred Stock, under the ticker GPUS PRD, are both listed on the NYSE American exchange.
The company's stock has experienced significant volatility, with a 94% decline over the past year and an EBITDA of -$37.25 million in the last twelve months. For comprehensive analysis and 12 additional key insights about Hyperscale Data's financial position, investors can access detailed metrics through InvestingPro. The focus remains strictly on the material facts of the transaction and the securities involved.
In other recent news, Hyperscale Data, Inc. has secured substantial funding through a series of financial transactions. The company has raised a total of $46.98 million through the sale of convertible preferred stock and associated warrants to Ault & Company, Inc. These sales are part of a broader agreement that allows for up to $75 million in funding. Additionally, Hyperscale Data has completed a reverse stock split, consolidating every thirty-five shares into one, and has sold a real estate property in St. Petersburg, Florida for $13.2 million.
In terms of strategic developments, Hyperscale Data is focusing on enhancing its data center operations, specifically its artificial intelligence (AI) data center in Michigan. The company plans to increase the facility's capacity from approximately 30 megawatts to 300 megawatts, contingent on necessary regulatory approvals and financing. Furthermore, Hyperscale Data's shareholders have approved the conversion of a 10% OID Convertible Promissory Note into common stock.
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