Ault Alliance Inc AULT

Beware of Milton C. Ault (aka Milton Todd Ault III)

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On April 16, 2024, Milton C. Ault (also known as Milton Todd Ault III) announced the successful completion of the distribution of TurnOnGreen, Inc. shares, previously Imperalis Holding Corp. (OTC: IMHC), in the form of a special dividend to Ault Alliance shareholders. The distribution occurred in three phases:

• First distribution on June 26, 2023: 40 IMHC shares per 1 Ault Alliance share.
• Second distribution on July 24, 2023: 15 IMHC shares per 1 Ault Alliance share.
• Third distribution on April 15, 2024: 0.81 IMHC shares per 1 Ault Alliance share.

He initially disclosed this special dividend on April 10, 2023 and postponed it on April 19, 2023. However, unmentioned in his announcement is the occurrence of two reverse splits within the year following the initial announcement: one on May 23, 2023, with a ratio of 1 for 300 shares held by investors, and another on January 17, 2024, with a ratio of 1 for 25 shares held by investors. These reverse splits followed by two stock dilutions, resulting in investors receiving a significantly reduced dividend and investment.

Moreover, omitted from his announcement is the fact that the dilution of Ault Alliance stock stemmed from the utilization of another company he owns, Ault & Company, to provide financing to Ault Alliance. This agreement granted Ault & Company the option to convert its financing into new Ault Alliance stocks, an option Mr. Ault promptly exercised.

Mr. Ault's promise of a special dividend manipulated the Ault Alliance stock price, attracting new investors who ultimately found themselves with diluted stock and minimal dividends, while Mr. Ault pocketed substantial profits. Is this fraudulent behavior? Further investigation by the SEC is warranted.