Back to the Ruse! On November 6, 2024, Milton C. Ault (also known as Milton Todd Ault III) and William B. Horne announced a one-time dividend of 10% in Series E Cumulative Redeemable Perpetual Preferred Stock to all common stockholders and Series C preferred stockholders.
For the first time, Mr. Ault has acknowledged the existence of "promising" fake special dividends, including a Bitcoin dividend. Regarding this, Mr. Horne stated, "Although the form of the dividend has changed from our original plan, the economic substance remains the same." This, however, is misleading, as the number of common shares has been increased from 4.86 million to 38.85 million following the latest reverse stock split.
Both Mr. Ault and Mr. Horne continue to promise dubious dividends. Given the company’s dire financial situation—currently reporting a net loss of $233 million—any potential payout would be minimal, especially as the stock dilution continues.