Ault Inc. closes on $8.8M additional senior secured debt financing

Ault Alliance announced that it, alongside several subsidiaries, has secured an additional $8.8 million in senior debt financing from a group of existing institutional lenders. The Company previously borrowed $18.9 million from the Lenders in November 2022, which together with the new Loans, have an aggregate outstanding amount of $24.3 million. 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 by Milton Ault, III, the Company’s Executive Chairman and the CEO of Ault & Company, Inc. The proceeds from the Loans will primarily be deployed for augmenting working capital and facilitating the general operational needs of the Company. The new Loans were issued with an original issue discount of $1.3 million.