DPW Holdings The Perfect Shell?

Who Day Is?

We are a diversified holding company acquiring undervalued assets and disruptive technologies with a global impact. The holding company model provides the structure to raise, allocate, deploy and manage significant permanent capital. We purchase companies we believe we can operate more effectively than incumbent management. We continually assess strategic opportunities to improve shareholder value.

GRESHAM WORLDWIDE

Gresham is noted for its strong, long term relationships with “blue chip” customers in defense, aerospace and commercial sectors across the globe. Provides high quality, ultra-reliable bespoke technology solutions for mission critical applications. GRESHAM POWER ELECTRONICS Ltd. Based in Salisbury, UK, Gresham designs and manufactures power conversion and distribution equipment for defense, industrial, commercial and medical applications. Equipment in service on virtually all UK Royal Navy submarine and surface fleets.

OWNERSHIP 100% MICROPHASE CORPORATION Based in Shelton, CT, Microphase designs, develops, and manufactures advanced radio frequency solutions and millimeter-wave and microwave technologies for the U.S. Department of Defense, international defense providers and aerospace manufacturers. Microphase also delivers customized products and solutions for commercial application.

OWNERSHIP 56.4% ENERTEC SYSTEMS 2001 Ltd. Based in Karmiel, Israel, Enertec designs, develops and manufactures military products, solutions and services including missile defense systems, mission computer products, simulators, command and control systems and power solutions designed to perform in harsh environments and battlefield conditions.

OWNERSHIP 100%

COOLYSIS TECHNOLOGIES CORP.

Who Dae Ist

Designs, develops and manufactures innovative, feature rich and top-quality power product solutions for mission-critical applications in harsh environments and life-saving, life-sustaining applications across diverse markets including defense and aerospace, medical and healthcare, industrial, telecommunications and automotive sectors.

OWNERSHIP 100%DIGITAL POWER CORPORATION Based in Milpitas, CA. Designs and manufactures innovative, feature rich and top-quality power product solutions for mission-critical applications in harsh environments and for life-saving, life-sustaining applications across diverse markets including defense and aerospace, medical and healthcare, industrial, telecommunications and automotive sectors.

OWNERSHIP 100% POWER-PLUS Power-Plus is a branded division of Digital Power providing customized value-added power solution customized product lines, and other power-related products and components.

New News Catalysts

Coolisys Technologies Corp. Announces Launch Date and Pricing of their ACECool™ Level 2 Residential Electric Vehicle Wall Mount AC Charging System

Available for Preorder Starting at $499 on November 15, 2020 and Available on Amazon Beginning January 1, 2021 at $599.

Milpitas, Calif., Oct. 16, 2020 — Coolisys Technologies Corp. (“Coolisys”), will begin accepting preorders for its ACECool™ level 2 residential electric vehicle (“EV”) wall mount charging system, beginning on November 15, 2020 and ending on December 31, 2020 at a starting price of $499. Coolisys further announced that it expects this product to be available for sale by Coolisys on Amazon beginning January 1, 2021 at a starting price of $599.

The Coolisys ACECool™ wall mount charging system is a level 2 AC charger that runs on 240 volts, compatible with the SAE J1772 standard, with the option to add an adapter to charge Tesla vehicles.

For those interested receiving a preorder notification, please sign up at https://www.coolisys.com/solutions/electric-vehicle-market/ev-charger-pre-order-signup/

Coolisys’ President and CEO, Amos Kohn said, “We are pleased to announce the launch date and pricing of our residential EV wall mount charging system. Coolisys’ compact, space saving wall mount AC charging system is easy to install and uses advanced charging technology in providing highly efficient and reliable charging service for electric vehicles. We believe our EV charger product line is well positioned to address the expected rapid expansion of infrastructure required to support broad adoption of electric vehicles globally.”

Coolisys Technologies Corp.® to Test ACECool™ EV Chargers Targeting National Fast-Food Franchise

Milpitas, Calif. — Coolisys Technologies Corp.® (“Coolisys®”), has established a program targeting both national and regional fast-food franchisees to install the ACECool electric vehicle (“EV”) chargers as a part of a revenue sharing program. The program initially will be funded from the Company’s recent capital raising activities. The program is expected to be launched in California, Nevada and Canada. While the Company is excited about Coolisys’ new franchise program, there is no assurance that the program will be successful.

The Company expects that the program will allow franchise owners and operators to install the ACECool EV chargers and share in the net revenue from advertising and network usage. This same program is anticipated to be a model for other strategic industry-focused and geo-focused networks. Coolisys expects to launch its program with a national fast-food network franchisee that forms a part of a network with over 1,000 locations. Coolisys expects to announce other network partners in the first quarter of 2021.

Global EV sales rose a dramatic 65% from 2017 to 2018, for a total of 2.1 million vehicles, with sales figures steady through 2019. The subsequent outbreak of the coronavirus pandemic, however, resulted in a 25% decline in EV purchases during the first quarter of 2020. Despite these setbacks, EV demand is again expected to rise according to a study by Bloomberg New Energy Finance, which sees improved batteries, more readily available charging infrastructure, new markets and price parity with internal combustion engine vehicles as the major growth drivers. The study estimates that EVs will comprise 10% of global passenger vehicle sales by 2025, rising to 28% in 2030 and 58% in 2040. In terms of expanding the current infrastructure to support EV deployment, McKinsey reported that by 2030 more the $30 billion will need to be spent on the rollout of EV chargers and, that by 2030, the US market for services to support the charging of EV fleets could be worth $15 billion.

Amos Kohn, President and CEO of Coolisys, said, “The opportunities for Coolisys in the burgeoning EV marketplace are anticipated to drive our sales growth over the next 60 months and beyond. We look forward to the potential changes coming from increased demand for EVs and the recent trends related to government support of the electrification of transport. I believe we are well positioned to leverage these opportunities as a 50+ year old company experienced and capable of creating innovative and highly-efficient power systems and solutions.”







Recent News

DPW Holdings’ Subsidiary Enters into an Agreement to Acquire a 617,000 Square Foot Michigan Mixed-Use Facility with Maximum Power Capacity of 300MW which Is Being Converted to a Cloud Data Center Offering Multi-Megawatt Hyperscale Requirements

Renovations to Become a Cloud Data Center Are Expected to Be Completed Within Three Months

Company Anticipates the 34.5 Acre Property Will Provide Up to $54M in Gross Revenue and $17M-$22M in Net Operating Income from Enterprise Cloud Data Center and Commercial Real Estate Operations

December 21, 2020 08:30 AM Eastern Standard Time

NEWPORT BEACH, Calif.–(BUSINESS WIRE)–DPW Holdings, Inc. (NYSE American: DPW) a diversified holding company (“DPW,” or the “Company”) announced today that Alliance Cloud Services, LLC (“ACS”), a newly formed majority-owned subsidiary of its wholly-owned subsidiary, Ault Alliance, Inc. (“AAI”), has signed a purchase agreement to acquire a 617,000 square foot mixed-use commercial facility located on a 34.5 acre site in southern Michigan (the “Facility”) for $3.9 million in cash. The Company believes the purchase price of the Facility represents significant value given that the estimated replacement cost of the building, property and the extensive integrated infrastructure, which includes power, gas and rail services on or immediately accessible to the property, would be approximately $95 million. The transaction is expected to close on or about January 29, 2021. Revenue from the existing commercial real estate operations will be recognized during the quarter ending March 31, 2021 and, upon completion of the initial buildout of 30,000 square feet, or the equivalent of 1,000 cabinets capable of housing over 40,000 servers, recognition of revenue from the Enterprise Cloud Data Center is expected to begin during the quarter ending June 30, 2021. While the Company believes the Facility and its anticipated future operations will be successful, the Company cannot assure you that its expectations will materialize in a timely manner, if at all.

“The acquisition of the Facility, and particularly its incremental expansion, in terms of both square footage and service offerings provides an opportunity to rapidly enter the data center business with limited risk as the initial offerings will be centered more on colocation services, which significantly reduces our overall capital needs.”Tweet this

Upon closing of the transaction, which is subject to shareholder approval by the seller of the Facility, ACS shall commence operations. Further, with the ability to offer up to 300MWs of critical power capacity, 34.5 acres of owned land that enables growth capacity and the flexibility to offer customizable space and power, the Facility has certain characteristics of a hyperscale data center but at a development cost significantly below those currently being built.

The hyperscale data center sector is expected to reach revenues of over $108 billion by 2025 according to a June 16, 2020 study by Arizton Advisory and Intelligence. Companies such as Amazon have spent hundreds of millions of dollars on hyperscale facilities that house tens of thousands of servers and related hardware. Further, Equinix, Inc., which provides colocation space and related services, reported in its annual report for the fiscal year ended December 31, 2019 estimated capital expenditures related to its data center expansion projects in the Americas of $760 million for 11,775 sellable cabinets, or approximately $65,000 per cabinet. Due to the Facility’s extensive integrated infrastructure, our anticipated capital expenditure costs are forecasted to be significantly less.

The buildout of the initial 30,000 square feet will be for colocation services, including build-to-suit arrangements, in which customers will be provided with secure, reliable and robust environments for hardware and access to network connectivity that are necessary to aggregate and distribute information. By initially focusing on colocation services that range from a single rack to multi-megawatt hyperscale requirements, the Company will be able to minimize its capital and operating expenses and also provide an attractive alternative to companies that either host internally and need additional capacity or are evaluating build vs. buy alternatives. Revenues from the colocation services will be primarily based on a recurring revenue model comprised of colocation for a predetermined amount of allocated power and related interconnection offerings. Ultimately, the Company intends to expand its service offerings to include managed cloud computing, in other words the on-demand availability of various technology resources, such as compute, storage and network.

The Facility features several strategic and operational advantages:

  • It currently operates with a positive net operating income from its existing commercial real estate customers;
  • It provides immediate access to notable power of approximately 28MWs, anticipated to be upgraded to 190MWs over the next 18 to 24 months with the option to reach a maximum capacity of approximately 300MWs, as necessary;
  • It features direct access to power from a local provider under a perennial energy abatement agreement with guaranteed pricing at relatively low energy rates for the next 5 years;
  • It has an on-premise natural gas system capable of producing approximately 12MWs;
  • It is located within 100 to 2,500 feet of major internet loops and fiber optics which enables the Enterprise Cloud Data Center to offer customers a wide choice of service providers;
  • It will feature a hyperscale enterprise cloud data center targeted to be 200,000 square feet over the next 3 to 5 years; and
  • At 50% capacity, the Facility is expected to generate annual gross revenues between approximately $54 million and $64 million.

Darren Magot, the CEO of Ault Alliance, Inc., said, “The acquisition of the Facility, and particularly its incremental expansion, in terms of both square footage and service offerings provides an opportunity to rapidly enter the data center business with limited risk as the initial offerings will be centered more on colocation services, which significantly reduces our overall capital needs.” Mr. Magot continued, “We see a clear opportunity to enter a large addressable market. In the second quarter of 2020, total global data center infrastructure equipment revenues, including both cloud and non-cloud, hardware and software, were $41.4 billion, according to Synergy Research Group. We do not expect to incur these computing related infrastructure costs at the outset of this program because by initially only offering colocation services we will not be required to deploy servers and other equipment. Since we expect to finance our data center operations and capital expenditures with internally generated cash from operations from the Facility, we intend to delay offering managed cloud services until our colocation base is sufficient to support the additional service offerings.”

Milton “Todd” Ault, III, the CEO and Chairman of the Company, observed, “This data center represents the culmination of years of work and preparation and is very timely given the lasting impact that the coronavirus pandemic will have on the way that companies operate and employees work. In the post-pandemic environment, I believe that companies will recognize the many benefits of a remote workforce. As such, I expect there will be a surge in the demand for services provided by hyperscale data centers such as the Facility.”

For more information regarding leasing commercial space or services from the hyperspace enterprise cloud data center, please email info@alliancecloudservices.com.

For more information on DPW Holdings and its subsidiaries, the Company recommends that stockholders, investors and any other interested parties read the Company’s public filings and press releases available under the Investor Relations section at www.DPWHoldings.com or available at www.sec.gov.

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