Benzinga | Feb 18, 2021 08:22AM EST

Ault Global Purchases Minority Stake In NTN Buzztime To Stop Gaming Asset Divestment

* Ault Global Holdings, Inc (NYSE: DPW) acquired a 9.96% stake in NTN Buzztime, Inc (NYSE: NTN) for $1.01 million or $3.42 per share as of January 29.

* The purchase price signifies a 37.9% discount to NTN's Wednesday closing price.

* Ault acquired the stake to prevent NTN from selling assets to eGames.com Holdings by forming a merger with Brooklyn ImmunoTherapeutics.

* According to Ault, NTN's assets, especially the gaming assets and customer lists, are significantly undervalued by the transaction.

* NTN decided to divest the assets to finance its working capital requirements after the pandemic jeopardized its subscription revenue, advertising revenue, and cash flow base.

* NTN has organized a special stockholder meeting on March 15 to ratify the merger and the asset sale. At the same time, AULT intends to stop the divestment by not voting at the meeting.

* Ault had raised $125 million in an upsized secondary offering yesterday.

* Price action: DPW shares are down 12% at $6.90 in the pre-market session on the last check Thursday. NTN shares are up 2.54% at $5.65.