By Katherine Hamilton

Ault & Co. will acquire preferred shares of Hyperscale Data, backing out of a planned tender offer to purchase the company's common stock.

The private holding company said on Thursday it plans to pursue transactions under the recently completed securities purchase agreement where it has the right to buy up to $25 million in shares of Hyperscale Data's Series G convertible preferred stock.

Ault & Co. had planned to buy 111,000 shares of Hyperscale's common stock at $7.50 to $10 a share.

The company said it believes the current stock price is below Hyperscale Data's long-term intrinsic value. The company may consider revisiting a tender offer once the purchase of the preferred shares is complete, it said.

Ault & Co. invests in securities and, along with its affiliates, owns about 92% of Hyperscale Data's outstanding shares of common stock. Hyperscale is a data center operator.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

January 02, 2025 17:18 ET (22:18 GMT)

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