Applied BlockchainNASDAQ: APLD

Applied Digital Co. NASDAQ: APLD designs, develops and operates next-generation data centers accommodating artificial intelligence (AI) service providers in the high-performance computing (HPC) industry. The AI boom has been driving the demand for more data centers, which is driving demand for next-gen data centers that fall right in Applied Digital's wheelhouse.

DALLAS, June 07, 2024 (GLOBE NEWSWIRE) -- Applied Digital Corporation (Nasdaq: APLD) ("Applied Digital" or the "Company"), a designer, builder, and operator of next-generation digital infrastructure designed for High-Performance Computing (“HPC”) applications, announced today that the Company has secured private financing from CIM Group, a leading investment firm and alternative asset manager with extensive experience in top-tier datacenter finance and development. APLD Holdings 2, LLC, a subsidiary of the Company (the “Borrower”), has issued a Promissory Note (the “Note”) for commitments that total $125 million at close (“Initial Commitments”). Of the Initial Commitments, $15 million will be drawn on the date hereof, and the remaining will be drawn subject to the satisfaction of certain conditions outlined in the Note. In addition to the Initial Commitments, the Note includes an accordion feature that allows for up to an additional $75 million of borrowings, subject to the mutual agreement of the Borrower and lender. Principal amounts repaid under the Note will not be available for reborrowing. In total, this financing provides the Company with up to $200 million to be used solely towards the buildout of its HPC Campus in Ellendale, ND.

DALLAS, May 24, 2024 (GLOBE NEWSWIRE) -- Applied Digital Corporation (Nasdaq: APLD) ("Applied Digital" or the "Company"), a designer, builder, and operator of next-generation digital infrastructure designed for High-Performance Computing (“HPC”) applications, announced that the Company recently entered into a private financing agreement with a single investor (the “Investor”), in which it issued a $42,131,579 unsecured convertible debenture. The convertible debenture bears no interest, has an original issue discount of five percent and has a term of 54 weeks. The conversion price for the note is the lower (a) $8.00 and (b) 95% of the lowest daily volume weighted average price of the Company's common stock during the five trading days immediately prior to the date of conversion. Below $8.00, the Investor is limited to converting no more than $16.0 million per month in the aggregate across all convertible debentures held by the Investor, which is roughly five percent of the previous thirty days value traded or less than two days of liquidity. Subject to the Investor's right to convert, the Company may prepay the note at any time that the Company's common stock trades below $8.00 or the thirtieth trading day after the registration statement registering the resale of the note's underlying shares becomes effective. The Investor has contractually agreed not to short the stock during the term of the note.

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Applied Digital stock is dropping on Friday after the data center company released its earnings report for the third quarter of fiscal year 2024, which includes an adjusted earnings per share of -24 cents.

Applied Digital Corporation will be holding a conference call to discuss its Q3 2024 results on April 11, 2024 at 5:00 PM ET. Present on the call will be Alex Kovtun from Gateway Group, Inc, Wes Cummins, the CEO, and David Rench, the CFO. Other participants include analysts from various firms such as B. Riley, Craig-Hallum, and Needham & Company.

Applied Digital's stock dropped as a result of lower-than-expected revenue due to a power outage.

Applied Digital, a provider of data-center services, fell short of Wall Street's revenue expectations for the third quarter due to a power outage at its Ellendale data center in January.