By Chris Wack
Ecoark Holdings Inc. said Thursday it will acquire 100% of the outstanding equity of Ault Alliance Inc.'s subsidiary BitNile.com Inc. for $100 million.
Ault shares were halted at 13 cents in premarket trading, and Ecoark shares were up 12% at 36 cents in premarket trading.
At closing, Ecoark will acquire BitNile.com from Ault Alliance and other founders in exchange for shares of Ecoark preferred stock. These shares will have a stated value of $100 million, be convertible into shares of Ecoark common stock, accrue dividends of 5% per annum for 10 years, and be entitled to certain other rights as set forth in the certificate of designation for the preferred stock.
The companies expect to complete the acquisition of BitNile.com during February.
BitNile.com's metaverse platform will launch March 1, and aims to incentivize users through a tiered rewards system supported by a revenue and reward model. The platform will be device-agnostic, where users will be able to play 3D immersive games, can purchase both digital and physical products, experience various forms of entertainment, and engage with a new social-networking community across any of their internet-connected devices. At launch, the Platform will be in beta format and not all of the experiences and functionality will be available immediately.
Write to Chris Wack at chris.wack@wsj.com
(END) Dow Jones Newswires
February 09, 2023 09:16 ET (14:16 GMT)
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