BitNile (NILE) Stock: Why The Price Jumped Up Today

Mar 28th, 2022 12:01 EST
  • The stock price of BitNile Holdings, Inc. (NYSE American: NILE) increased by over 14% during intraday trading today. This is why.

The stock price of BitNile Holdings, Inc. (NYSE American: NILE) increased by over 14% during intraday trading today. Investors are responding positively to BitNile announcing that it will pay off its senior secured notes this week. The 10% Original Issuance Discount Promissory Notes were sold in December 2021 and are due and payable on March 31, 2022. The repayment of the Notes will release the security interest in most of the assets of the company, as well as the pledges of equity interests in the company’s subsidiaries.

The repayment of the Notes will eliminate certain restrictive covenants, allowing the company to move forward with the announced plans related to its subsidiary TurnOnGreen, an electronic vehicle charging, and power solutions company.

The company had previously announced plans that will result in TurnOnGreen becoming a publicly-traded company and its intent to distribute securities of TurnOnGreen to BitNile stockholders including approximately 140 million common shares of TurnOnGreen and an equal number of warrants to purchase such shares, subject to regulatory approval.

KEY QUOTES:

“We are pleased to be in a position to fully pay our senior secured debt this week. Other than the loans on our portfolio of hotels, which are non-recourse to the parent company, the Company will be virtually debt-free.”

— Kenneth S. Cragun, the company’s Chief Financial Officer

“The elimination of this secured debt is significant for BitNile and our stockholders as we will be able to pursue the issuance of special dividends and execute on strategic opportunities to spin out key holdings in the future.”

— Milton “Todd” Ault, III, the company’s Executive Chairman

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.

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