NYSEAM:GPUS - Post by User
Post by
ecabrera333on Jun 07, 2024 3:07am
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Post# 36076911
Ault Alliance in Dire Straits: Urgent Cash Injection Needed!
Ault Alliance in Dire Straits: Urgent Cash Injection Needed!According to the latest SEC filing dated June 5, 2024, Milton C. Ault (aka Milton Todd Ault III), disclosed that Ault Alliance is securing a $20 million loan from OREE Lending Company, LLC and Helios Funds LLC, with an alarming interest rate of 15.0% per annum.
This decision to borrow at such a high rate signals significant financial distress within the company. Moreover, it suggests that Ault Alliance is far from achieving profitability, as it continues to incur losses. To cover the loan, Mr. Ault may resort to further diluting the company's stock.
Given these circumstances, it raises doubts about the wisdom of investing in the stock, especially considering the special dividend promised earlier in the week. Would you still consider buying the stock under these conditions?