Hyperscale Plans Tender Offer to Repurchase Shares at an 82% Premium, Capped at USD 50 Million

Shenchao TechFlow reported on November 9, citing PR Newswire, that Hyperscale Data (GPUS), an AI data center company listed on NYSE American, announced plans to launch a tender offer to repurchase up to 192,307,692 Class A common shares using a combination of cash and newly issued preferred stock, at USD 0.26 per share, representing up to approximately USD 50 million. For every 100 common shares, holders may receive 1 unit, comprising USD 2 in cash and 1 share of preferred stock with a stated value of USD 24. The preferred stock carries an annual dividend rate of 12.00%. The USD 0.26 offer price represents an 82% premium to the November 6 closing price of USD 0.1429. The tender offer is subject to a minimum condition requiring at least 100 million common shares to be tendered; the company intends to apply to list the preferred stock on NYSE American, and trading is expected to begin within 30 days after approval. The official launch is expected around November 17, subject to board and regulatory approvals. Executive Chairman Milton “Todd” Ault III said there is a clear disconnect between the company's intrinsic value and its current share price. The tender offer provides shareholders with liquidity and a fixed-income instrument while allowing the company to repurchase a significant proportion of shares at a substantially undervalued level. The company said its current market capitalization does not reflect the strength of its balance sheet, including its cash and Bitcoin holdings.

Source: Shenchao TechFlow