Ault/Hyperscale Group Discloses 21.6% Powell Max Stake, 37.2M Share Convertible Overhang
PMAX sits 78% above its 52-week low of $0.449.
Summary
Ault, Hyperscale and affiliates reported a 21.6% stake in Powell Max and flagged possible board, capital-structure or deal actions, while disclosing a convertible overhang of up to 37.2 million Class A shares.
Key Events · Ownership and Investor Activity · PMAX
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Ault Group Discloses 21.6% Stake
Hyperscale Data, Ault Capital, Ault Lending, Alpha Structured Finance and Milton Ault III jointly report 609,597 Class A shares, or 21.6% of the 2,820,367 shares outstanding as of October 21, 2026.
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Convertible Overhang Far Larger
Ault Lending's 13,570,511 Class C shares convert at $0.3648 into up to 37,199,803 Class A shares, excluded from the 21.6% only by a 4.99% blocker — roughly 13 times the current share count if fully converted.
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$11.7M Paid for Class C Block
Ault Lending paid $11,707,262 ($24.90 per Class C share) to Target Capital 12, Secure Net Capital and Great Point Capital under the August 7, 2026 assignment agreement.
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Board Rights Terminated
Amendment No. 1 to the January 29, 2026 purchase agreement deleted Section 4.20, extinguishing the right to designate Class C directors and a CEO, effective with the transfer.
Analysis · PMAX · Trade & Services
A group led by Milton Ault III and Hyperscale Data has disclosed a 21.6% beneficial stake in Powell Max and says it will press the board on ways to lift shareholder value, including possible board, capitalization or business-combination changes. That headline 21.6% understates the position: Ault Lending's 13,570,511 Class C shares convert at $0.3648 into roughly 37.2 million Class A shares, held back only by a 4.99% ownership blocker. Against 2,820,367 shares outstanding, the potential dilution overhang is very large for a company whose entire market value is under $2 million. As a condition of consolidating the position, the group also gave up board-designation and CEO-appointment rights under the January 2026 purchase agreement — a shift from contractual control to open-market and activist pressure.
How filings like this one have moved
In the 30 days to Nov 10, 2026, 47.7% of the 1624 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.19%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, PMAX was trading at $0.80 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $1.6M. The 52-week trading range was $0.45 to $33.50. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.