Post by
ecabrera333 on Mar 27, 2024 10:13pm
Beware of Ault Alliance, Inc., and its suspicious management
Milton C. Ault, the Company’s Executive Chairman (who was charged by the SEC for making misleading disclosures and other violations, see https://www.sec.gov/enforce/33-11222-s), along with the Board of Directors, hold the belief that investors are easily misled.
Having monitored this company for the past two years, a consistent pattern emerges. Whenever the company requires cash infusion, it announces generous dividends to entice new investors. However, as the stock price rises, Ault Alliance (the Company) swiftly unload millions of common stock units, leading to stock price dilution. Just prior to the dividend record date, the dividend is cancelled, leaving investors with significantly diluted stakes in the company.
After failing to secure investor approval to increase the threshold to issue new shares in the past two shareholder meetings, the managers of the Company have found a workaround. They’ve executed two reverse stock splits and issued new shares under the threshold limit allowed.
What's most egregious is the unabashed perpetuation of this scheme without any repercussions. It's confounding why this behavior hasn't been challenged.