Ault Alliance Emphasizes that the Market Price of Its Common
Stock Continues to Trade at a Significant Discount to Its Net Book
Value
Ault Alliance, Inc. (NYSE American: AULT), a diversified holding
company (“Ault Alliance,” or the “Company”), today
shared a letter from its Executive Chairman to its
stockholders.
Dear Stockholders,
I am reaching out to share an update about our outlook on the
future for the Company.
Financial Highlights:
As of March 19, 2024, the Company had approximately 30.0 million
shares of common stock outstanding. Based on the Company’s balance
sheet as of September 30, 2023, the book value of Ault Alliance’s
common stock is approximately $2.98 per share. Our common stock
currently trades at a significant discount to the book value.
The previously announced preliminary revenue of $169 million for
the full year 2023 reflects the productive asset base the Company
has built. I believe our key investments and productive assets will
provide significant upside for growth, including what we believe
are opportunities related to artificial intelligence
(“AI”).
Strategic & Operational Highlights:
The recent termination of the at-the-market (“ATM”)
facility for the Company’s common stock aligns with our strategy to
optimize the financing of operations and avoid further
dilution.
Our data center in Michigan (the “Michigan Data Center”),
owned by Sentinum, Inc. (“Sentinum”), is a foundational
asset for the Company. While the book value of the Michigan Data
Center is held on the balance sheet at approximately $20 million, I
believe the true value of the asset to be significantly higher.
Sentinum currently utilizes approximately 30 megawatts
(“MW”) at the Michigan Data Center, however, the facility
has the opportunity to expand to 300 MW, subject to the Company’s
receipt of state regulatory approvals adequate funding, which it
may or may not obtain. The Michigan Data Center has nearly 14 acres
under roof at 617,000 square feet with an additional 20 acres of
land available to support expansion. The power expansion potential
coupled with the size and ability to scale into a hyper-scale
generative AI facility provides, in our view, a significant upside
for the facility and the Company as a whole.
Market Position & Outlook:
I truly believe that the public market, as reflected in the
current trading price of our stock, does not fully recognize or
value the Company appropriately. We have assets, such as the
Michigan Data Center, our property in St. Petersburg, and the four
hotels within our Ault Global Real Estate Equities, Inc.
subsidiary, that each could sell for more than the entire current
market capitalization of Ault Alliance. The diverse portfolio of
assets assembled by the Company are currently anticipated to
generate approximately $200 million or more of topline revenue in
2024 and the public valuation is less than one-tenth of 2024
expected revenue.
Common Stock Buyback Plan:
After the filing of our Form 10-Q for the quarter ended March
31, 2024, which is expected to be filed in May 2024, we currently
anticipate initiating the buyback of our common stock under the
previously approved $50 million buyback plan. This directly
reflects my belief in the existing value of our assets, the bright
future for the Company and as well as the potential of certain key
investments.
The timing and number of shares repurchased, if any, will depend
on a variety of factors, including further approval of the
Company’s board of directors, available financing as well as the
Company’s cash position, the price and trading volume of the
Company’s common stock, general business and market conditions, and
restrictions on stock repurchases in existing loan agreements,
among other items, in each case at the time when the Company may
initiate share repurchases pursuant to a trading plan for the
repurchases in compliance with the Rule 10b5-1 of the Securities
Exchange Act of 1934, as amended. The Company intends to finance
the repurchases from several sources, including excess cash flow
from operations, as and when available, and proceeds from future
borrowing arrangements or financings.
In conclusion, I encourage everyone to spend time conducting in
depth due diligence in order to fully appreciate the current value
and future potential of Ault Alliance and its assets. My focus,
along with every employee at the Company, is on creating long-term
stockholder value and properly monetizing our existing asset
base.
Warm regards,
Milton “Todd” Ault III
Executive Chairman, Ault Alliance
For more information on Ault Alliance and its subsidiaries, Ault
Alliance recommends that stockholders, investors, and any other
interested parties read Ault Alliance’s public filings and press
releases available under the Investor Relations section at
www.Ault.com or at www.sec.gov.
About Ault Alliance, Inc.
Ault Alliance, Inc. is a diversified holding company pursuing
growth by acquiring undervalued businesses and disruptive
technologies with a global impact. Through its wholly and
majority-owned subsidiaries and strategic investments, Ault
Alliance owns and operates a data center at which it mines Bitcoin
and offers colocation and hosting services for the emerging
artificial intelligence ecosystems and other industries, and
provides mission-critical products that support a diverse range of
industries, including metaverse platform, oil exploration, crane
services, defense/aerospace, industrial, automotive,
medical/biopharma, consumer electronics, hotel operations and
textiles. In addition, Ault Alliance extends credit to select
entrepreneurial businesses through a licensed lending subsidiary.
Ault Alliance’s headquarters are located at 11411 Southern
Highlands Parkway, Suite 240, Las Vegas, NV 89141;
www.Ault.com.
Forward-Looking Statements
This press release contains “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. These forward-looking statements generally include
statements that are predictive in nature and depend upon or refer
to future events or conditions, and include words such as
“believes,” “plans,” “anticipates,” “projects,” “estimates,”
“expects,” “intends,” “strategy,” “future,” “opportunity,” “may,”
“will,” “should,” “could,” “potential,” or similar expressions.
Statements that are not historical facts are forward-looking
statements. Forward-looking statements are based on current beliefs
and assumptions that are subject to risks and uncertainties.
Forward-looking statements speak only as of the date they are
made, and the Company undertakes no obligation to update any of
them publicly in light of new information or future events. Actual
results could differ materially from those contained in any
forward-looking statement as a result of various factors. More
information, including potential risk factors, that could affect
the Company’s business and financial results are included in the
Company’s filings with the U.S. Securities and Exchange Commission,
including, but not limited to, the Company’s Forms 10-K, 10-Q and
8- K. All filings are available at www.sec.gov and on the Company’s
website at www.Ault.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20240320968207/en/
Ault Alliance Investor Contact: IR@Ault.com or
1-888-753-2235
Grafico Azioni Ault Alliance (AMEX:AULT)
Storico
Da Dic 2024 a Gen 2025
Grafico Azioni Ault Alliance (AMEX:AULT)
Storico
Da Gen 2024 a Gen 2025
