Hyperscale Data Secures $15.96M Prepaid Advance at 4% Interest
GPUS•Hyperscale Data entered a prepaid advance agreement with Yorkville for a $15.958M principal loan, net $15.0M after a 6% discount, bearing 4% interest payable by December 10, 2027. Proceeds will fund its Michigan data center campus development and general purposes, with optional share conversion at up to $0.2153 per share.
1. Pre-Paid Advance Terms
Hyperscale Data and Yorkville executed a prepaid advance agreement providing a $15.958 million principal advance, subject to a 6% discount for a net commitment of $15.0 million. The advance bears 4% interest, with principal and accrued interest due by December 10, 2027.
2. Use of Proceeds
A portion of the advance proceeds will accelerate development of Hyperscale Data’s Michigan data center campus, with the balance allocated toward general corporate purposes to support ongoing operations and growth initiatives.
3. Equity Conversion Option
Yorkville may issue a purchase notice to convert outstanding advance balances into Class A common stock at a per share price equal to the lower of $0.2153 or 90% of the lowest five-day VWAP, subject to a $0.10 minimum price per share.
4. Strategic Outlook and Divestiture Plan
Hyperscale Data anticipates divesting its Ault Capital Group subsidiary in Q2 2027 via voluntary exchange of Series F preferred shares for ACG common stock, transitioning the company to a pure data center and digital asset operator post-divestiture.
