© Reuters.
LAS VEGAS – Ault Alliance, Inc. (NYSE American: AULT), a diversified holding company, has announced its intention to initiate a $50 million buyback of its common stock, a move that underscores the company’s confidence in the value of its assets. This decision comes after the company reported its common stock is trading at a significant discount to its book value, which as of September 30, 2023, stood at approximately $2.98 per share.
The company’s Executive Chairman, Milton “Todd” Ault III, in a letter to shareholders, highlighted Ault Alliance’s diverse portfolio of assets, including the Michigan Data Center, property in St. Petersburg, and four hotels under its subsidiary Ault Global Real Estate Equities, Inc. The Chairman believes these assets alone could sell for more than the company’s current market capitalization. He also pointed out the company’s preliminary revenue of $169 million for the full year 2023 and anticipated topline revenue of $200 million or more for 2024.
The stock buyback plan is expected to commence following the filing of the company’s Form 10-Q for the quarter ending March 31, 2024, which is slated for May 2024. The repurchase program will be subject to various factors, including board approval, available financing, the company’s cash position, stock price and trading volume, and general business and market conditions. The company plans to finance the buybacks through excess cash flow from operations and potential future borrowing arrangements.
Ault Alliance’s strategic and operational highlights include the termination of the at-the-market facility for its common stock to avoid further dilution and the potential expansion of the Michigan Data Center’s capacity from 30 megawatts to 300 megawatts, pending state regulatory approvals and funding.
The information in this article is based on a press release statement from Ault Alliance, Inc.
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