BitNile Holdings, Inc., a diversified holding company (“BitNile” or the “Company”) announced today that it borrowed $14.7 million of principal amount of a secured promissory note (the “Note”) from an accredited investor and shareholder. The Note matures on March 16, 2023, although if the Company repays at least $12 million of principal payment on or before the maturity date, the Company may extend the maturity date by 45 days by paying a fee of 10% of the outstanding balance owed as of the original maturity date. The Note is secured by certain assets of the Company and various subsidiaries. The purchase price for the Note was $13.5 million, of which $12 million was paid in cash and $1.5 million was a non-accountable expense allowance.
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The Loans are guaranteed by Ault Lending, LLC, a subsidiary of the Company (“Ault Lending”), Ault & Company, Inc., an affiliate of the Company, as well as Milton C. Ault, III, the Company’s Executive Chairman and the Chief Executive Officer of Ault & Company, Inc.
The proceeds from the Note will be used for one of the Company’s first private equity related investments, the previously announced agreement to purchase substantially all of the operating assets of Circle 8 Crane Services LLC (“Circle 8”), which is expected to close later today. The Company’s investments in private equity and commercial real estate are led by Christopher K. Wu, the President of the Company’s subsidiary, Ault Alliance, Inc.
The Company’s Founder and Executive Chairman, Milton “Todd” Ault, III said, “Chris Wu and I are very pleased to close this financing related to what I believe will be a transformational acquisition of the crane operations of Circle 8, an expected key component of our initiatives in energy and infrastructure. We expect to repay the Note from funds from Ault Lending and proceeds from certain real estate transactions.”
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