NYSEAM:AULT - Post Discussion
Post by
ecabrera333 on May 09, 2024 8:21am
Dilution Plus More Dilution
On May 8, 2024, Milton C. Ault (aka Milton Todd Ault III) discreetly informed the SEC about Ault Alliance's upcoming Annual Meeting of stockholders, scheduled for June 28, 2024, at 12:00 P.M. Eastern Time. Investors unaware of SEC filings might miss this information.
In the disclosure, Mr. Ault revealed plans for a reverse stock split, with a ratio ranging from one for two to one for thirty-five, to be executed before June 27, 2025. Given past actions, Mr. Ault is likely to opt for the maximum ratio of 1:35. Subsequently, he intends to unload millions of shares, as indicated in the SEC filing, which states that up to 6 million shares of Common Stock may be issued under the 2024 Stock Incentive Plan. It is highly probable that Mr. Ault will issue the maximum number of shares. Prepare for potential short selling opportunities.
Furthermore, it is worth noting that Mr. Ault received an annual compensation of USD 2,173,059 in 2022, including a bonus of USD 1,716,667. This bonus was granted despite the company incurring net losses of USD 183 million in 2022. He received an annual compensation of USD 742,440 in 2023 despite incurring net losses of USD 233M. Why getting paid for generating net losses?
On the same day as the SEC filing, Mr. Ault attempted to divert attention by proudly announcing that Ault Alliance's subsidiary, Sentinum, had completed the initial bitcoin mining installation at its Montana location. However, it is crucial to recognize that this venture operates at a loss. Mr. Ault's assumption of investor ignorance is evident in this strategy.
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